Answer:
B. debit to Cash for $1,092,500
Explanation:
The journal entry to record the issuance of the bond is shown below:
Cash Dr ($1,150,000 × 95%) $1,092,500
Discount on bond payable $57,500
To Bond payable $1,150,000
(Being the issuance of the bond is recorded)
Here the cash and discount is debited as it increased the assets and discount while the bond payable is credited as it also increased the liabilities
Therefore option B is correct
