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

Multiple Choice

The Miracle Corporation issues 1,000, 10-year, 8%, $1,000 bonds dated January 1, 2011, at 96. The journal entry to record the issuance will show a

A) debit to Discount on Bonds Payable for $40,000.
B) debit to Cash of $1,000,000.
C) credit to Bonds Payable for $960,000.
D) credit to Cash for $960,000.