how-would-you-balance-the-journal-entry-for-issuing-zero-coupon-bonds-with-a-fac

Question

How would you balance the journal entry for issuing zero coupon bonds with a face value of $80,000 at a 12% discount?

Accepted Answer

Debit Cash $$70,400, Credit Bonds Payable 80$$,000, Debit Discount on Bonds Payable $9,600

Answer

Debit Cash $$80,000, Credit Bonds Payable 80$$,000

Answer

Debit Cash $$80,000, Credit Bonds Payable 70$$,400, Credit Discount on Bonds Payable $9,600

Answer

Debit Cash $$70,400, Credit Bonds Payable 70$$,400

How would you balance the journal entry for issuing zero coupon bonds with a face value of \$80,000 at a 12% discount?