Maxwell Manufacturing issued $890,000, 10-year, 8% bonds at 99. The journal entry to record bond insurance:

MC:

• credit to Bonds Payable for $881,100.

• credit to Bonds Payable for $890,000.

• debit to Premium on Bonds Payable for $71,200.

• credit to Discount on Bonds Payable for $8,900.

• debit to Cash for $890,000.