Question

On January 1, 2013, Jacob issues $600,000 of 11%, 15-year bonds at a price of 102. What is the journal entry to record the issuance of these bonds?

A.


Cash 600,000
Bonds Payable 600,000

B.


Bonds Payable 600,000
Cash 600,000

C.


Cash 615,000
Bonds Payable 600,000
Premium on Bonds Payable 15,000

D.


Cash 600,000
Premium on Bonds Payable 15,000
Bonds Payable 615,000

E.


Cash 600,000
Discount on Bonds Payable 9,000
Bonds Payable 609,000

Answer

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