On January 1, Parson Freight Company issues 8.5%, 10-year bonds with a par value of $2,300,000. The bonds pay interest semiannually. The markerate of interest is 9.5% and the bond selling price was $2,143,712. The bond issuance should be recorded as:Multiple Choice22Debit Cash $2,300,000; credit Bonds Payable $2,300,000.Debit Cash $2143,712; credit Bonds Payable $2,143,712.Debit Cash $2,300,000; credit Bonds Payable $2,143,712: credit Discount on Bonds Payable $156,288.Nohit Cach 2143712 dehit Diecount on Ronds Pavahle $156.288 crerdit Ronds Pavahle 2 300 000McGrawHill< Prev9 of 10Next >9:12 P96%Type here to search3/21/20 Multiple ChoiceDebit Cash $2,300,000; credit Bonds Payable $2,300,000.Debit Cash $2,143,712; credit Bonds Payable $2,143,712.Debit Cash $2,300,000; credit Bonds Payable $2,143,712; credit Discount on Bonds Payable $156,288.Debit Cash $2,143,712; debit Discount on Bonds Payable $156,288; credit Bonds Payable $2,300,000.Debit Cash $2,143,712; debit Interest Expense $156,288; credit Bonds Payable $2,300,000.

The bonds are issued at discount when market rate is higher than the coupon rate of bonds payable.

On January 1, Parson Freight Company issues 8.5%, 10-year bonds with a par value of $2,300,000. The bonds pay interest semiannually. The m rate of interest is 9.5% and the bond selling price was $2,143,712. The bond issuance should be recorded as: Multiple Choice Debit Cash $2,300,000; credit Bonds Payable $2,300,000. Debit Cash $2,143,712; credit Bonds Payable $2,143,712. Debit Cash $2,300,000; credit Bonds Payable $2,143,712, credit Discount on Bonds Payable $156.288. Dohit Cach 2143 712 dahit Diernunt on Ronds Pavahle 156288 credir Ronde Pavahle 2300 000 Mc Graw Hill < Prev 9 of 10 Next > 96% Type here to search

On January 1, Parson Freight Company issues 8.5%, 10-year bonds with a par value of $2,300,000. The bonds pay interest semiannually. The m rate of interest is 9.5% and the bond selling price was $2,143,712. The bond issuance should be recorded as: Multiple Choice Debit Cash $2,300,000; credit Bonds Payable $2,300,000. Debit Cash $2,143,712; credit Bonds Payable $2,143,712. Debit Cash $2,300,000; credit Bonds Payable $2,143,712, credit Discount on Bonds Payable $156.288. Dohit Cach 2143 712 dahit Diernunt on Ronds Pavahle 156288 credir Ronde Pavahle 2300 000 Mc Graw Hill < Prev 9 of 10 Next > 96% Type here to search

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 7MCQ

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Similar questions

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