Smith Corporation issues $1,800,000, 10-year, 9% bonds payable at a price of 98. The journal entry to record the issuance will includea:A. credit to Bonds Payable for $1,764,000.OB. debit to Cash of $1,800,000.OC.O D.credit to Discount on Bonds Payable for $36,000.debit to Cash for $1,764,000.

The bonds payable are reported as the long-term liabilities. The bonds are issued to raise the money…

Smith Corporation issues $1,800,000, 10-year, 9% bonds payable at a price of 98. The journal entry to record the issuance will incl a: OA. credit to Bonds Payable for $1,764,000. B. debit to Cash of $1,800,000. C. credit to Discount on Bonds Payable for $36,000. D. debit to Cash for $1,764,000.

Smith Corporation issues $1,800,000, 10-year, 9% bonds payable at a price of 98. The journal entry to record the issuance will incl a: OA. credit to Bonds Payable for $1,764,000. B. debit to Cash of $1,800,000. C. credit to Discount on Bonds Payable for $36,000. D. debit to Cash for $1,764,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Smith Corporation issues $1,800,000, 10-year, 9% bonds payable at a price of 98. The journal entry to record the issuance will include
a:
A. credit to Bonds Payable for $1,764,000.
OB. debit to Cash of $1,800,000.
OC.
O D.
credit to Discount on Bonds Payable for $36,000.
debit to Cash for $1,764,000.

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