10. Bonds with a face value of $1,000,000 are sold at 98. What is the journal entry to record the sale

of the bonds?

1. Cash 980,000

Loss on Sale of Bonds 20,000

Bonds Payable 1,000,000

1. Cash 980,000

Bonds Payable 980,000

1. Cash 1,000,000

Bonds Payable 1,000,000

1. Cash 1,000,000

Gain on Sale of Bonds 20,000

Bonds Payable 980,000