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Gomez Corporation Issues 600, 10-Year, 8%, $1,000 Bonds Dated January

Question 220

Multiple Choice

Gomez Corporation issues 600, 10-year, 8%, $1,000 bonds dated January 1, 2014, at 96. The journal entry to record the issuance will show a


A) debit to Cash of $600,000.
B) credit to Discount on Bonds Payable for $24,000.
C) credit to Bonds Payable for $576,000.
D) debit to Cash for $576,000.

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