On January 1, Year 1, Hanover Corporation issued bonds with a $59,000 face value, a stated rate of interest of 7%, and a 5-year term to maturity. The bonds were issued at 98. Hanover uses the straight-line method to amortize bond discounts and premiums. Interest is payable in cash on December 31 each year.
The journal entry used to record the issuance of the bond and the receipt of cash would be: (Round your answer to the nearest whole dollar amount.)Cash 59,000​ Discount on Bonds Payable 236​
Bonds Payable 58,764​
Cash 58,764​ Discount on Bonds Payable 236​ Bonds Payable 59,000​
Cash 57,820​ Discount on Bonds Payable 1180​ Bonds Payable 59,000​
Cash 59,000​ Bonds Payable 59,000​