Martinez Corporation issues 2,000, 10-year, 8%, $1,000 bonds dated January 1, 2020, at 98. The journal entry to record the issuance will show a____________.

A. credit to Discount on Bonds Payable for $40,000

B. debit to Cash for $1,960,000

C. debit to Cash of $2,000,000

D. credit to Bonds Payable for $2,040,000

Answer rating: 100% (QA)

Cash DR 1960000 Discount on issue of bonds DR 400000 8 Bonds repayable CR 2000000 Bond... View the full answer