Torrey Corporation Issued $1,000,000 of Ten-Year, 10 Percent Bonds Payable

question 64

Multiple Choice

Torrey Corporation issued $1,000,000 of ten-year, 10 percent bonds payable dated January 1, 2009. The market rate of interest at that time was 11 percent. The journal entry to record this transaction will include a:

• A) debit to Bond Discount.
• B) credit to Bond Premium.
• C) credit to Bond Discount.
• D) credit to Cash.

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