Four Thousand Bonds with a Face Value of $1,000 Each

question 304

Multiple Choice

Four thousand bonds with a face value of $1,000 each, are sold at 102. The entry to record the issuance is

• A) Cash 4,080,000 Bonds Payable 4,080,000
• B) Cash 4,000,000 Premium on Bonds Payable 80,000
• Bonds Payable 4,080,000
• C) Cash 4,080,000 Premium on Bonds Payable 80,000
• Bonds Payable 4,000,000
• D) Cash 4,080,000 Discount on Bonds Payable 80,000
• Bonds Payable 4,000,000