Bowman Corporation issued $500,000 in term bonds with a coupon rate of 6%. The bonds pay interest annually for 10 years. At the time the bonds are issued, the market rate of interest was less than 6%. Accordingly, Bowman is able to issue the bonds at 102 ($510,000). Use this information for questions 1-3. 1. The entry to record the issuance of the bond is a. Debt Cash $500,000 and Credit Bond Payable $500,000 b. Debit Cash $510,000 and Credit Bond Payable $510,000 c. Debit Cash $500,000, Debit Bond Premium $10,000 and Credit Bond Payable $510,000 d. Debit Cash $510,000, Credit Bond Premium $10,000 and Credit Bond Payable $500,000 2. The entry to record the first interest payment is a. Debit Interest Expense $30,000 and Credit Interest Payable $30,000 b. Debit Interest Expense $29,000, Debit Bond Premium $1,000 and Credit Cash $30,000 c. Debit Interest Expense $30,600 and Credit Cash $30,600 d. Debit Interest Expense $30,000 and Credit Bond Premium $30,000 3. The payment of the bond principle at maturity: a. Debit Cash $500,000 and Credit Bond Payable $500,000 b. Debit Bond Payable $510,000 and Credit Cash $510,000 c. Debit Bond Payable $500,000 and Credit Cash $500,000 d. Debit Bond Premium $10,000, Debit Bond Payable $500,000 and Credit Cash $510,000