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Blanding Company issues $1,000,000 of 8%, 10-year bonds at 98 on February 28, 2013

Accounting

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Blanding Company issues $1,000,000 of 8%, 10-year bonds at 98 on February 28, 2013. The bond pays interest every February 28. The journal entry to record the issuance would include a

1. 1. debit to Cash for $1,000,000.
   2. credit to Bonds payable for $980,000.
   3. credit to Discount on bonds payable for $20,000.
   4. debit to Cash for $980,000.