Question & Answer: The journal entry to record the issuing of 100 bonds at their $1,000 face v…..

The journal entry to record the issuing of 100 bonds at their $1,000 face value will include a debit to ______ and a credit to ______:

Cash; Bonds Payable

Notes Payable; Cash

Cash; Bonds Receivable

Bonds Payable; Cash

Expert Answer

 

The journal entry to record the issuing of 100 bonds at their $1,000 face value :-

Cash 1000
Bonds payable 1000

By issuing bonds, we receive cash therefore, cash is debited ( debit what comes in ) but we also generate a liability therefore, Bonds payable is credited. Since the bonds are issued at face value, therefore, no discount or premium is recorded.

The correct answer is Option A

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