Which of the following answers shows the effect of the bond issuance on the financial statements?

Name: Which of the following answers shows the effect of the bond issuance on the financial statements?
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Question

Quizplus · Accepted Answer

$17,500 x 98% = $17,150 issue price. The bond issuance increases assets (cash) and increases liabilities (bonds payable minus discount on bonds payable). It is reported as a cash inflow for financing activities on the statement of cash flows.

Which of the Following Answers Shows the Effect of the Bond