Glenn Corporation issues 1,000, 10-year, 8%, $2,000 bonds dated January 1 at 96. The journal entry to record the issuance will show a

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The bonds are issued at 96, meaning they are issued at 96% of the face value. The face value is $2,000,000 (1,000 bonds x $2,000 each), so the cash received is $1,920,000. The discount on bonds payable is the difference between the face value and the cash received, which is $80,000.

Glenn Corporation Issues 1,000, 10-Year, 8%, $2,000 Bonds Dated January