Harner Company issued USD 100,000 of 12 percent bonds on 2010 March 1. The bonds are dated 2010 January 1, and were issued at 96 plus accrued interest. The entry to record the issuance would be:
|
Cash |
98,000 |
|
|
Discount on bonds payable |
4,000 |
|
|
Bonds payable |
100,00 |
|
|
0 |
||
|
Bonds interest payable |
2,000 |
|
|
Cash |
102,000 |
|
|
Bonds payable |
100,00 |
|
|
0 |
||
|
Bond interest payable |
2,000 |
|
|
Cash |
96,000 |
|
|
Discount on bonds payable |
4,000 |
|
|
Bonds payable |
100,00 |
|
|
0 |
||
d. None of the above.