$1($Mandatory$)$

Saved

On January $1,$ Year $1,$ Hanover Corporation issued bonds with a $$77,500$ face value, a stated rate of interest of $6\%,$ and a $5-$year term to maturity. The bonds were issued at $96.$ Hanover uses the straight$-$line method to amortize bond discounts and premiums. Interest is payable in cash on December $31$ each year.

The journal entry used to record the issuance of the bond and the receipt of cash would be: $($Round your answer to the nearest whole dollar amount.$)$

Multiple Choice

$\backslash$table$[[$Account Title,Debit,Credit$],[$Cash$,76,880,],[\backslash$table$[[$Discount on Bonds Payable$],[$Ronds Pavable$]],620,77590]]$

$\backslash$table$[[,$Debit,Credit$],[$Cash$,74,400,],[$Discount on Bonds Payable,$3,100,],[$Bonds Payable,,$77,500]]$

Bonds Payable

$77,500$

$\backslash$table$[[$Account Title,Debit,Credit$],[$Cash$,77,500,620],[\backslash$table$[[$Discount on Bonds Payable$],[$Bonds Payable$]],,76,880]]$