Question
A company received cash proceeds of $206,948 on a bond issue with a par value of $200,000. The difference between par value and issue price
A company received cash proceeds of $206,948 on a bond issue with a par value of $200,000. The difference between par value and issue price for this bond is recorded as a:
Multiple Choice
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Credit to Discount on Bonds Payable.
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Debit to Discount on Bonds Payable.
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Debit to Premium on Bonds Payable.
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Credit to Interest Income.
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Credit to Premium on Bonds Payable.
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Financial & Managerial Accounting For Undergraduates
Authors: Jason Wallace, James Nelson, Karen Christensen, Theodore Hobson, Scott L. Matthews
2nd Edition
161853310X, 9781618533104
