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The journal entry to record the issuance of a $1,000 bond that is sold at 99.5 would include: A credit to the Discount on Bond

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The journal entry to record the issuance of a $1,000 bond that is sold at 99.5 would include: A credit to the Discount on Bond account of $5 A credit to cash for $995 A debit to the Discount on Bond of $5 A credit to bonds payable for $995. The cost of borrowing to a company that issues bond is equal total interest expense over the life of the bond. True False A $10,000 bond is sold at 100. What can be said about the contractual interest rate in comparison to the market interest rate? Nothing. There isn't enough information to determine. The contractual interest rate is less than the market rate. The contractual interest rate is less than the market rate The contractual Interest rate and market interest rate are equal

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