A corporation issued

$1,000,000

of

11%

, five-year bonds that pay semiannual interest of

$55,000

, receiving cash of

$1,038,606

. At issuance, the corporation should record: a debit to Bonds Payable of

$1,038,606

.\ a credit to Bonds Payable of

$1,038,606

.\ a credit to Bonds Payable of

$1,000,000

.\ a credit to Cash of

$1,000,000

.

A corporation issued $1,000,000 of 11%, five-year bonds that pay semiannual interest of $55,000, receiving cash of $1,038,606. At issuance, the corporation should record: a debit to Bonds Payable of $1,038,606. a credit to Bonds Payable of $1,038,606. a credit to Bonds Payable of $1,000,000. a credit to Cash of $1,000,000