Bonds with a face amount of $1,000,000 are sold at 98. The entry to record the issuance is a. Cash 980,000 Discount on Bonds Payable 20,000 Bonds Payable 1,000,000 b. Cash 980,000 Premium on Bonds Payable 20,000 Bonds Payable 1,000,000 c. Cash 980,000 Bonds Payable 980,000 d. Cash 1,000,000 Premium on Bonds Payable 20,000 Bonds Payable 980,000

a. Cash 980,000 Discount on Bonds Payable 20,000 Bonds Payable 1,000,000

Explanation:

The bonds are issued at a discount whenever the rate of interest in market is higher than the coupon rate on bond. The bonds are denoted as 100 when they are issued at par. If the bonds are denoted as anything below 100, they are issued at discount and if they are denoted as anything above 100, they are issued at a premium.

The discount on bond issued at 98 = 1000000 * 0.02  =  20000

The cash received on the issue of bond at 98 = 1000000 - 20000 = 980000

Cash                                          980000 Dr

Discount on Bonds Payable    20000 Dr

         Bonds Payable                        1000000 Cr

SO, option A is the correct answer.

the clients (funders) and customers (individual nonprofit staff) are great to work with. that i can be open about being a person of faith when appropriate. the variety of my tasks each day.

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know