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On January 1, Parson Freight Company issues 8.0%,10-year bonds with a par value of $2,700,000....

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Accounting

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On January 1, Parson Freight Company issues 8.0%,10-year bonds with a par value of $2,700,000. The bonds pay interest semiannually. The market rate of interest is 9.0% and the bond selling price was $2,516,532. The bond issuance should be recorded as: Multiple Choice Debit Cash \$2,516,532; debit Discount on Bonds Payable \$183,468; credit Bonds Payable $2,700,000 Debit Cash $2,700,000; credit Bonds Payable $2,700,000. Debit Cash \$2,516,532; debit interest Expense \$183,468; credit Bonds Payable $2,700,000. Debit Cash $2,700,000; credit Bonds Payable $2,516,532; credit Discount on Bonds Payable $183,468 Debit Cash \$2,516,532; credit Bonds Payable \$2,516,532

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