Baker Company issued $200,000 of ten-year bonds to yield 11% when the stated rate of the bonds was 9%. Present value interest factors (PVIF) are:

	9%	11%
PVIF of $1, 10 years	0.42241	0.35218
PVIF of Annuity of $1, 10 years	6.41766	5.88923

The entry to record the bond issuance would be

Multiple Choice

• DR Cash	176,442
  DR Bond premium	23,558
  CR Bonds payable		200,000

• DR Cash	176,442
  DR Bond discount	23,558
  CR Bonds payable		200,000

• DR Cash	223,558
  CR Bond premium		23,558
  CR Bonds payable		200,000

• DR Cash	223,558
  CR Bond discount		23,558
  CR Bonds payable		200,000