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On April 1, 20X6, Ratchford Industries issued $500,000 of 12%, 10-year bonds. The bonds, which were issued at 103, pay interest on October 1 and
On April 1, 20X6, Ratchford Industries issued $500,000 of 12%, 10-year bonds. The
bonds, which were issued at 103, pay interest on October 1 and April 1. The entry to
record issuance of the bonds includes:
A. a debit to Cash of $500,000.
B. a credit to Bonds Payable of $503,000.
C. a debit to Premium on Bonds Payable of $15,000.
D. All of the above.
E. None of these.
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