Bonds with a face amount of $1,000,000 are sold for $1,060,000. The journal entr
ID: 2411818 • Letter: B
Question
Bonds with a face amount of $1,000,000 are sold for $1,060,000. The journal entry to record the bond issuance is
Cash 1,000,000
Premium on Bonds Payable 60,000
Bonds Payable 1,060,000
Cash 1,060,000
Discount on Bonds Payable 60,000
Bonds Payable 1,000,000
Cash 1,060,000
Bonds Payable 1,060,000
Cash 1,060,000
Premium on Bonds Payable 60,000
Bonds Payable 1,000,000
a.Cash 1,000,000
Premium on Bonds Payable 60,000
Bonds Payable 1,060,000
b.Cash 1,060,000
Discount on Bonds Payable 60,000
Bonds Payable 1,000,000
c.Cash 1,060,000
Bonds Payable 1,060,000
d.Cash 1,060,000
Premium on Bonds Payable 60,000
Bonds Payable 1,000,000
Explanation / Answer
Cash 1060000 Premium on Bonds Payable 60000 Bonds Payable 1000000 Option D is correct