21 On January 1 of 20s Person Fresg Company ues 5 10 yewr bo

21. On January 1 of 20s, Person Fresg Company ues 5% 10 yewr bonds with a par value of $3.800,000 The bends pey eres recerded O Debr Cash $1,800,000, credt Bonds Payacie $1.800.000 On Bones pwede S2582 Debt Cosh $3.541 787 t Deacount on Bonds Peyabie $25a.23 credt Bonds Peyable $3.800.00 O Deot Cash $154 787 e $258.213 credt Bonds Payable $1.800.000 Type here to search 8

Solution

Journal entry :

so answer is d) Debit cash 3541787, debit discount on bonds payable 258213, Credit bonds payable 3800000

Date	accounts & explanation	debit	credit
	Cash	3541787
	Discount on bonds payable	258213
	Bonds payable		3800000
	(To record issuance of bonds)