multiple select question select all that apply totito inc. issues $100,000 face amount bonds at $98,000. the…

multiple select question select all that apply totito inc. issues $100,000 face amount bonds at $98,000. the journal entry to record the issuance of the bonds should include debit(s) to: discount on bonds payable for $2,000 cash for $100,000 a debit to loss on bond issuance for $2,000 cash for $98,000 need help? review these concept resources. read about the concept rate your confidence to submit your answer. high medium low

multiple select question select all that apply totito inc. issues $100,000 face amount bonds at $98,000. the journal entry to record the issuance of the bonds should include debit(s) to: discount on bonds payable for $2,000 cash for $100,000 a debit to loss on bond issuance for $2,000 cash for $98,000 need help? review these concept resources. read about the concept rate your confidence to submit your answer. high medium low

Answer

Explanation:

Step1: Determine cash received

The bonds are issued at $98,000, so cash received is $98,000 and we debit Cash for $98,000. Debit Cash = $98,000

Step2: Calculate bond discount

The face - value of bonds is $100,000 and the issue price is $98,000. The discount on bonds payable is $100,000 - $98,000=$2,000. We debit Discount on bonds payable for $2,000. Debit Discount on bonds payable=$2,000

Answer:

Discount on bonds payable for $2,000, Cash for $98,000