On January 1, Parson Freight Company issues 7.5%, 10-year bonds with a par value of $2,100,000. The bonds pay interest semiannually. The market rate of interest is 8.5% and the bond selling price was $1,957,302. The bond issuance should be recorded as: Multiple Choice Debit Cash $2,100,000; credit Bonds Payable $1,957,302; credit Discount on Bonds Payable $142,698. Debit Cash $1,957,302; debit Interest Expense $142,698; credit Bonds Payable $2,100,000. Debit Cash $1,957,302; debit Discount on Bonds Payable $142,698; credit Bonds Payable $2,100,000. Debit Cash $2,100,000; credit Bonds Payable $2,100,000. Debit Cash $1,957,302; credit Bonds Payable $1,957,302.
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