The Victor Corporation issues 1,000, 10-year, 8%, $1,000 bonds dated January 1, 2011, at 96. The journal entry to record the issuance will show a
A) debit to Cash of $1,000,000.
B) credit to Discount on Bonds Payable for $40,000.
C) credit to Bonds Payable for $960,000.
D) debit to Cash for $960,000.

Question

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The Answer of The Victor Corporation issues 1,000, 10-year, 8%, $1,000 bonds dated January 1, 2011, at 96. The journal entry to record the issuance will show a
A) debit to Cash of $1,000,000.
B) credit to Discount on Bonds Payable for $40,000.
C) credit to Bonds Payable for $960,000.
D) debit to Cash for $960,000.

The Victor Corporation Issues 1,000, 10-Year, 8%, $1,000 Bonds Dated