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A corporation issues $4,000,000 10-year, 8% bond dated January 1 at 103. The journal entry to record the issuance will include a credit to Cash
A corporation issues $4,000,000 10-year, 8% bond dated January 1 at 103. The journal entry to record the issuance will include
a credit to Cash for $4,120,000.
a credit to Bonds Payable for $4,000,000.
a debit to Cash for $4,000,000.
a debit to Premium on Bonds Payable for $120,000.
a credit to Interest Expense for $120,000.
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