38,39

In the balance sheet, the account Premium on Bonds Payable is o classified as a revenue account. o added to bonds payable. o deducted from bonds payable. o classified as a stockholders' equity account. One thousand bonds with a face value of $1,000 each, are sold at 97. The entry to record the issuance is o (Dr.) Cash 1,030,000 (Cr.) Bonds Payable 1,030,000 o (Dr.) Cash 970,000 (Dr.) Discount on Bonds Payable 30,000 (Cr.) Bonds Payable 1,000,000 o (Dr.) Cash 1,000,000 (Cr.) Discount on Bonds Payable 30,000 (Cr.) Bonds Payable 970,000 o (Dr.) Cash 1,030,000 (Cr.) Premium on Bonds Payable 30,000 (Cr.) Bonds Payable 1,000,000