On January 1, Parson Freight Company issues 7.0%, 10-year bonds with a par value of $3,500,000. The bonds pay interest semiannually. The market rate of interest is 8.0% and the bond selling price was $3,466,993. The bond issuance should be recorded as:

• Debit Cash $3,466,993; credit Bonds Payable $3,466,993.

• Debit Cash $3,500,000; credit Bonds Payable $3,500,000.

• Debit Cash $3,500,000; credit Bonds Payable $3,466,993; credit Discount on Bonds Payable $33,007.

• Debit Cash $3,466,993; debit Discount on Bonds Payable $33,007; credit Bonds Payable $3,500,000.

• Debit Cash $3,466,993; debit Interest Expense $33,007; credit Bonds Payable $3,500,000.

Answer rating: 100% (QA)

Answer The correct answer is Debit Cash 3466993 cre... View the full answer