26) If bonds are sold at 102, this means that they are sold at a their face value. a) discount b) premium compared to 27) If Company A sells $50,000 of bonds at 97 and receives $48,500, which of the following would be the correct way for Company A to record the sale of bonds at a discount into the T accounts? a) Cash 48,500 Bonds Payable 50,000 Discount on Bonds Payable 1,500 b) Cash Bonds Payable 48,500 48,500 c) Cash Bonds Payable 48,500 50.000 Discount on Bonds Payable 1.500 28) A discount on bonds payable a) increases b) reduces c) does not affect the total cost of borrowing. 29) When the bonds in question (27) above are redeemed (paid off), what is the amount that Company A would record as a credit to cash? a) $48,500 b) $50,000 c) $51,500 d) some other amount