Fiorentino Corporation recorded the following in its general journal on 1/1/13: Which of the following answers correctly describes the transaction on 1/1/13?

Question

Fiorentino Corporation recorded the following in its general journal on 1/1/13:  Which of the following answers correctly describes the transaction on 1/1/13?

Quizplus · Accepted Answer

A $100,000 bond issued at 98 will be recorded as a debit (increase) to cash for $98,000, the issue price, a debit (increase) to the contra-liability discount on bonds payable for $2,000, and a credit (increase) to the liability bonds payable for $100,000, the bond's face value.

Fiorentino Corporation Recorded the Following in Its General Journal on 1/1/13