The Hayden Corporation Issues 1,000, 10-Year, 8%, $2,000 Bonds Dated

Multiple Choice

The Hayden Corporation issues 1,000, 10-year, 8%, $2,000 bonds dated January 1 at 92. The journal entry to record the issuance will show a

A) credit to Discount on Bonds Payable for $160,000
B) debit to Cash of $2,000,000
C) credit to Bonds Payable for $2,000,000
D) credit to Cash for $1,840,000