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Question 1O Risky Ltd issues $8 million in 5-year, 6%, semi-annual coupon debentures in a private placement. The rate of return required by the debenture

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Question 1O Risky Ltd issues $8 million in 5-year, 6%, semi-annual coupon debentures in a private placement. The rate of return required by the debenture holder is 8 %. What is the journal entry to record the issue of the debentures (round to the nearest dollar)? Dr Cash Cr Debentures A. 8 000 000 8 000 000 Dr Cash Cr Debentures 7 351 128 . 7 351 128 9 297 743 Dr Cash C. 9 297 743 Cr Debentures 8 648 872 Dr Cash Cr Debentures D. 8 648 872 (2 marks) Ouestion 11

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