Answer:
Dr cash proceeds $3,325,959
Dr discount on bonds payable $674,041
Cr bonds payable $4,000,000
Explanation:
The cash proceeds from the bond issuance is $3,325,959
The face value of the bond issued is $4,000,000
Discount on bond issuance=$4,000,000-$3,325,959
Discount on bond issuance=$674,041.00
The appropriate double entries would be to debit the cash account and discount on bonds payable with $3,325,959 and $674,041 resepectively while bonds payable is credited with $4,000,000
