ACCOUNTING nstructions help Question 2 (of 34) Save & Exit Submit O You did not

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ACCOUNTING nstructions help Question 2 (of 34) Save & Exit Submit O You did not receive credt for thes question in a previous atempr on January 1 of 2015. Parson Freight Company issues 75% 10 year bonds with a par value of S the bond seling prce was $2,423.327 The bond isseance should be recorded as 2600,000 me bonds pay merest semeann aby The market rate of interest is 8 5% and ef merest B 5% and O Debi Cash $2 600.000. creat Bonos Payable $2 600,000 O Debit Cash $2 423.327 credit Bonds Payable $2.423327 . Debit Cash $2.600,000, cied" Bonds Payable S2,4227, credit Discount on Bonds Payable$176 673 O Debit Cash $2.423.327, debit Discount on Bonds Payable $176673 credit Bondls Payable $2600000 O Debit Cash $2-423327. debr interest Expense s76,673,credit Bonds Payable 2600,000 @4- ?..

Explanation / Answer

Cash account ..............Dr 2423327

Discount on bonds payable ............Dr 176673

To Bonds payable 176673

( Being bonds issued )

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