1. Gates Industries need to raise capital for expansion purpose. Management is considering issuing $1,000,000 of 7.5%, 20-year bonds dated June 1, 2023, with interest payment dates of December 1 and June Gates year-end is December 31. The entry to record the issuance of the bonds on June 1, 2023, at 103 3/8 includes a:
   1. Debit to bonds payable for $1,000,000
   2. Debit to premium on payable for $33,750
   3. Credit to premium on bonds payable for $30,375
   4. Debit to cash for $1,033,750