Samson Enterprises issued a ten-year, $20 million bond with a 10% interest rate for $19,500,000. The entry to record the bond issuance would have what effect on the financial statements?

Samson Enterprises issued a ten-year, $20 million bond with a 10% interest rate for $19,500,000. The entry to record the bond issuance would have what effect on the financial statements?



A) Increase assets.

B) Increase liabilities.

C) Increase stockholders' equity.

D) Increase assets and liabilities.


Answer: D


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