Burton Company issued bonds with a face value of $100,000 on January 1, 2019, for a selling price of $90,000.

a. Was this bond issued at a premium or discount?

b.

How is the premium or discount classified on the financial statements?

	a.	In the liability section of the balance sheet
	b.	As a loss on the income statement
	c.	As a gain on the income statement
	d.	In the asset section of the balance sheet

c.

Which of the following journal entries would be required to record the bond issue on January 1, 2019?

	a.	Cash 90,000 Bond Payable 80,000 Premium on Bonds Payable 10,000
	b.	Cash 100,000 Bond Payable 100,000
	c.	Cash 100,000 Discount on Bond Payable 10,000 Bond Payable 90,000
	d.	Cash 90,000 Discount on Bond Payable 10,000 Bond Payable 100,000