The journal entry to record selling $200,000 maturity value bonds at 98 will involve a credit to bonds payable for $196,000.

Name: The journal entry to record selling $200,000 maturity value bonds at 98 will involve a credit to bonds payable for $196,000.
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The credit to bonds payable should be for the full maturity value of $200,000, not $196,000. The discount on bonds payable of $4,000 ($200,000 - $196,000) is recorded separately.

The Journal Entry to Record Selling $200,000 Maturity Value Bonds