C is corrent. Bonds payable sold at a discount should be recorded net of this discount. Battle would record the sale of these bonds at $194,000 (200 x $1,000 x .97). Note that this amount is not affected by accrued interest, which is reported separately as a current liability, interest payable.
A is incorrect. Bonds payable sold at a discount should be recorded net of this discount. Battle would record the sale of these bonds at $194,000 (200 x $1,000 x .97). Note that this amount is not affected by accrued interest, which is reported separately as a current liability, interest payable.
A is incorrect. Bonds payable sold at a discount should be recorded net of this discount. Battle would record the sale of these bonds at $194,000 (200 x $1,000 x .97). Note that this amount is not affected by accrued interest, which is reported separately as a current liability, interest payable.
D is incorrect. Bonds payable sold at a discount should be recorded net of this discount. Battle would record the sale of these bonds at $194,000 (200 x $1,000 x .97). Note that this amount is not affected by accrued interest, which is reported separately as a current liability, interest payable.
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