1.Fadwa Corporation issued a $24,000, 10-year, 11% bond dated January 1, at 102. The journal entry to record the issuance of the bond will include a:

Select one:

a. debit to Cash for $24,000.

b. debit to Cash for $24,480.

c. credit to Bonds Payable for $24,480.

d. debit to Discount on Bonds Payable for $480.

2. Longbine Corporation redeemed $130,000 face value, 12% bonds on June 30, 2017, at 102. The carrying value of the bonds at the redemption date was $118,500. The bonds pay annual interest, and the interest payment due on June 30, 2017, has been made and recorded.

Instructions: The journal entry includes

Select one:

a. a credit to discount on bonds payable 11500

b. a credit to bonds payable 118500

c. a debit to loss on bonds redemption 15100

d. a debit to cash 132600