Your Company Issues $500,000 in Bonds at a Price of 98.The

Multiple Choice

Your company issues $500,000 in bonds at a price of 98.The journal entry used to record the issuance will include a debit to:

A) Cash for $490,000, a debit to Discount on Bonds Payable for $10,000, and a credit to Bonds Payable for $500,000.
B) Bonds Payable for $500,000, a credit to Discount on Bonds Payable for $10,000, and a credit to Cash for $490,000.