Question

What would be the required journal entry on the date of issuance if a company issues $100,000 five-year, 10% bond for $96,231 and the interest is to be paid semiannually?

A. debit cash, $100,000, and credit bond payable $100,000

B. debit cash $103,769, and credit bond payable $100,000 and credit premium on bonds payable $3,769

C. debit bonds payable $103,769 and debit discount on bonds payable $3,769, and credit cash $100,000

D. debit cash $103,769 and debit discount on bonds payable $3,769, and credit bonds payable $100,000

The answer is B, but please show me the steps to get this answer, I'm so confused :(

Answer 1

Account Titles and Explanation	Debit ($)	Credit ($)
Cash	96,231
Discount on bonds payable	3,769
Bond Payable		100,000
[The journal entry to record the issuance of the Bond]

Hiii.. the right answer choice is “Debit Cash $96,231 and Debit discount on bonds payable $3,769, and Credit bonds payable $100,000”. But the right answer choice is not listed in the given options