Use the information above to answer the following question.The entry to record the issuance of the bonds on January 1,2014,would include:
A)a credit to Discount on Bonds Payable of $57,500.
B)a debit to Cash of $442,500.
C)a debit to Bonds Payable of $500,000.
D)a credit to Premium on Bonds Payable of $90,000.

Question

Quizplus · Accepted Answer

The issuance of bonds typically involves receiving cash, so a debit to Cash would be recorded for the amount received, which is $442,500 in this case.

Use the Information Above to Answer the Following Question