Smith Corporation issues $2,000,000,10-year,8% bonds payable at a price of 98.The journal entry to record the issuance will include a:
A) debit to Cash of $2,000,000.
B) credit to Discount on Bonds Payable for $40,000.
C) credit to Bonds Payable for $1,960,000.
D) debit to Cash for $1,960,000.
Correct Answer:
Verified
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