Answer:
Dr. Cash $98,000
Dr. Discount on Bond $2,000
Cr. Bond payable $100,000
Explanation:
If the bonds are issued at a price below the face value then the bonds are issued on a discounted value. The difference between face value and issuance value is known as discount. This discount is recorded separately and amortized over bond's life.
As per given data
Face value = $100,000
Issuance value = $98,000
Discount = $100,000 - $98,000 = $2,000
