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If a company issues $500,000 of 6%, 10-year bonds dated January 1, 2017, that mature on December 31, 2026, and pays interest semiannually on June 30 and December 31 each year, how does the issuer initially record the sale of these bonds if they are sold at par value? A) Debit to Cash $500,000; and credit to Bond Payable $500,000. B) Debit to Cash $530,000; and credit to Bond Payable $500,000. C) Debit to Cash $470,000; and credit to Bond Payable $500,000. D) Debit to Cash $500,000; and credit to Interest Expense $30,000.
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