Park Enterprises issued bonds with a face value of $500,000, receiving cash of $508,000. To record this event, Bonds Payable should be credited for $500,000.

Question

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Issuing these bonds is recorded as a debit (increase) to cash of $508,000, a credit (increase) to bonds payable of $500,000, and a credit (increase) to premium on bonds payable of $8,000.

Park Enterprises Issued Bonds with a Face Value of $500,000