A company issued 10-year, 9% bonds with a par value of $500,000 when the market rate was 9.5%. The company received $484,087 in cash proceeds. Prepare the issuer's journal entry to record the issuance of the bond.
What will be an ideal response?
| Cash | 484,087 |
| Discount on Bonds Payable………………... | 15,913 |
| Bonds Payable…………………. | 500,000 |
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