The Journal Entry to Record $230,000 of Bonds That Were

Multiple Choice

The journal entry to record $230,000 of bonds that were issued at 98 would be to:

A) debit Cash, $225,400; debit Discount on bonds payable, $4,600; credit Bonds payable, $230,000.
B) debit Cash, $225,400; credit Bonds payable, $225,400.
C) debit Cash, $230,000; credit Bonds payable, $225,400; credit Premium on bonds payable, $4,600.
D) debit Cash, $230,000; credit Bonds payable, $230,000.