If $538,000 of 8% bonds are issued at 95, the amount of cash received from the sale is

a. $581,040

b. $511,100

c. $538,000 

d. $494,960

The entry used to journalize the issuance of a discounted note to borrow funds for the business is 

a. debit Accounts Payable and credit Notes Payable 

b. debit Cash and Interest Expense and credit Notes Payable 

c. debit Cash and Interest Payable and credit Notes Payable 

d. debit Notes Payable and credit Cash