Northbrook Corporation issued $60,000 bonds payable to acquire Machinery.The journal entry to record the transaction is:

Question

Quizplus · Accepted Answer

The journal entry to record the issuance of $60,000 bonds payable to acquire Machinery would be:

Dr. Machinery (asset) $60,000
Cr. Bonds Payable $60,000

Option B is the correct entry that includes the correct accounts and debit/credit amounts. Option A has incorrect accounts and Option C and D have incorrect debit/credit amounts.

Northbrook Corporation Issued $60,000 Bonds Payable to Acquire Machinery