What would be the journal entry to record ten $2,000, 6%, 10 year bonds at 96 on January 1st?

To record the purchase of the bonds, the journal entry would be as follows:

Date: January 1st
Account Debit: Bonds Payable - $20,000 (10 bonds x $2,000 each)
Account Credit: Cash - $19,200 (10 bonds x $2,000 x 96%)

Explanation of the journal entry:

1. Determine the accounts involved:
- Bonds Payable: This account represents the long-term liability owed to bondholders.
- Cash: This account represents the amount paid for the bonds.

2. Identify the amounts:
- The face value of each bond is $2,000.
- The market price or purchase price is given as 96% of the face value, which is $1,920 per bond ($2,000 x 0.96).
- Since there are 10 bonds, the total cash paid would be $19,200 ($1,920 x 10).

3. Apply the accounting equation:
- Debit the Bonds Payable account to increase the long-term liability on the balance sheet.
- Credit the Cash account to reflect the decrease in cash from the bond purchase.

Therefore, the journal entry on January 1st would be a debit of $20,000 to Bonds Payable and a credit of $19,200 to Cash.