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Golden corporation issued $350,000 bonds payable with a 4% interest rate at a price of 93, to yield 5.2%. The bonds were dated and sold on December 31, 20x1 and come due January 1, 20x9 and interest payment dates will be July 1 and January 1 each year.
Question 1: What The journal entry to record the issue of the bonds included a:
A- Debit to bonds, $350,000.
B- Credit to Cash $325,500
C- Debit to Discount on Bonds payable, $24, 500.
D- CREDIT TO BONDS PAYABLE, $325,500.
E. A and B are correct
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