Question: Need help with this question On January 1, Parson Freight Company issues 7.5%.10-year bonds with a par value of $3,100,000. The bonds pay interest semiannually.

Need help with this question

Need help with this question On January 1, Parson Freight Company issues

On January 1, Parson Freight Company issues 7.5%.10-year bonds with a par value of $3,100,000. The bonds pay interest semiannually. The market rate of interest is 8.5% and the bond selling price was $2,889,352. The bond issuance should be recorded as: Multiple Choice O Debit Cash $3,100,000; credit Bonds Payable $3,100,000. Debit Cash $2,889,352; credit Bonds Payable $2,889,352. O Debit Cash $3,100,000; credit Bonds Payable $2,889,352; credit Discount on Bonds Payable $210,648. O Debit Cash $2,889,352; debit Discount on Bonds Payable $210,648; credit Bonds Payable $3,100,000. m Debit Cash $2,889,352; debit Interest Expense $210,648; credit Bonds Payable $3,100,000

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