Multiple Choice
Bonds with a face amount $1,000,000 are sold at 106. The journal entry to record the issuance is
A) Cash 1,000,000
Premium on Bonds Payable Bonds Payable
60,000
1,060,000
B) Cash Premium on Bonds Payable
1,060,000
60,000
Bonds Payable
1,000,000
C) Cash Discount on Bonds Payable
1,060,000
60,000
Bonds Payable
1,000,000
D) Cash Bonds Payable
1,060,000
1,060,000
Correct Answer:
Verified
Correct Answer:
Verified
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