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On October 1, 2008, Sinatra Corporation issued 5%, 10-year bonds with a par value of $300,000 at 104. Interest is paid on October 1 and
On October 1, 2008, Sinatra Corporation issued 5%, 10-year bonds with a par value of $300,000 at 104. Interest is paid on October 1 and April 1. The entry to record the issuance of the bonds would include a
a. | credit of $288,000 to Bonds Payable. | |
b. | credit of $12,000 to Premium on Bonds Payable. | |
c. | credit of $7,500 to Accrued Interest Payable. | |
d. | debit of $12,000 to Discount on Bonds Payable. |
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