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Business, 18.02.2020 21:53 gjeaneasley

On January 1, Parson Freight Company issues 7 % , 10-year bonds with a par value of $2,000,000. The bonds pay interest semiannually. The market rate of interest is 8% and the bond selling price was $1,864,097. The bond issuance should be recorded as: A) Debit Cash $1,864,097; debit Discount on Bonds Payable $135,903; credit Bonds Paysble $2,000,000. B) Debit Cash $1,864,097; credit Bonds Payable $1,864,097, C) Debit Cash $2,000,000; credit Bonds Payable $2,000,000 D) Debit Cash $2,000,000, credit Bonds Payable $1864,097; credit Discount on Bos Payable $135,903. E) Debit Cash $1864,097; debit Interest Expense $135,903, credit Bonds Payable $2,000,000

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On January 1, Parson Freight Company issues 7 % , 10-year bonds with a par value of $2,000,000. The...
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