Discount on Bonds Video Lessons

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Problem: Gomez Corporation issues 1,000, 10-year, 8%, $1,000 bonds dated January 1, 2014, at 98. The journal entry to record the issuance will show a a. debit to Cash of $1,000,000. b. credit to Discount on Bonds Payable for $20,000. c. credit to Bonds Payable for $980,000. d. debit to Cash for $980,000.

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Problem Details

Gomez Corporation issues 1,000, 10-year, 8%, $1,000 bonds dated January 1, 2014, at 98. The journal entry to record the issuance will show a

a. debit to Cash of $1,000,000.

b. credit to Discount on Bonds Payable for $20,000.

c. credit to Bonds Payable for $980,000.

d. debit to Cash for $980,000.

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What scientific concept do you need to know in order to solve this problem?

Our tutors have indicated that to solve this problem you will need to apply the Discount on Bonds concept. You can view video lessons to learn Discount on Bonds. Or if you need more Discount on Bonds practice, you can also practice Discount on Bonds practice problems.

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Based on our data, we think this problem is relevant for Professor Petroni's class at MSU.