If ABC Company Receives $100,000 Cash in Exchange for Issuing

question 82

Multiple Choice

If ABC Company receives $100,000 cash in exchange for issuing 100 bonds at their $1,000 face value,the transaction will be recorded with a:

• A) debit to Cash of $100,000 and a credit to Bonds Payable of $100,000.
• B) debit to Bonds Payable of $100,000 and a credit to Cash of $100,000.
• C) debit to Cash of $100,000 and a credit to Bonds Payable of $99,000 and to Premium on Bonds Payable of $1,000.

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