Marin Inc. issues $263,000, 10-year, 7% bonds at 98. Prepare the journal entry to record the sale of these bonds on March 1, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

The journal entry is shown below:

On March 1, 2017:

Cash A/c Dr $257,740 ($263,000 * 98%)

Discount on issue of bonds A/c $5,260 ($263,000 * 2%)

To Bonds payable A/c $263,000

(Being the sale of bonds is recorded)

While recording the sale of bonds we debited the cash account and the discount on issue of bonds and credited the bonds payable account