On the first day of the current fiscal year, $200,000 of 5-year, 10% bonds, with interest payable annually, were sold for $192,462. What account would be listed in the description column (1) as the debit for the $192,462 in the journal entry to record this transaction? JOURNAL Page 25 DATE DESCRIPTION P.REF. DEBIT CREDIT (1) 192,462 (2) 7,538 (3) 200,000 Bonds Payable Cash Discount on Bonds Payable Premium on Bonds Payable

On the first day of the current fiscal year, $200,000 of 5-year, 10% bonds, with interest payable annually, were sold for $192,462. What account would be listed in the description column (1) as the debit for the $192,462 in the journal entry to record this transaction? JOURNAL Page 25 DATE DESCRIPTION P.REF. DEBIT CREDIT (1) 192,462 (2) 7,538 (3) 200,000 Bonds Payable Cash Discount on Bonds Payable Premium on Bonds Payable

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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