Concord Corporation issues 10, 10- year, 8%, $1000 bonds dated January 1, 2020, at 98. The journal entry at issuance credit to bonds Debit to Cash for payable of $9,800 $10,000 credit to Discount debit to Cash for on Bonds Payable for $200 $9,800

Concord Corporation issues 10, 10- year, 8%, $1000 bonds dated January 1, 2020, at 98. The journal entry at issuance credit to bonds Debit to Cash for payable of $9,800 $10,000 credit to Discount debit to Cash for on Bonds Payable for $200 $9,800

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 8RE

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Concept explainers

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

Question

Tell me why this is the answer as opposed to the others

Concord Corporation issues 10, 10-
year, 8%, $1000 bonds dated
January 1, 2020, at 98. The journal
entry at issuance
credit to bonds
Debit to Cash for
payable of $9,800
$10,000
credit to Discount
debit to Cash for
on Bonds Payable
for $200
$9,800

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