Question

Your company issues $50,000 of one-year, 10% bonds at face value. The journal entry to record this transaction will include a debit to:

A) Cash and a credit to Bonds Payable for $50,000.

B) Cash and a credit to Bonds Payable for $55,000.

C) Cash for $55,000, a credit to Bonds Payable for $50,000, and a credit to Interest Payable for $5,000.

D) Cash for $50,000, a debit to Interest Expense for $5,000, and a credit to Bonds Payable for $55,000.

Answer

This answer is hidden. It contains 217 characters.