On October 1, 2015, Bartleby Corp. issued 5%, 10-year bonds with a face value of $3,000,000 at 104%. On October 1 and April 1, interest is paid. Any premiums or discounts are amortized on a straight-line basis. Which of the following will you include in your entry to record the issuance of the bonds?

On October 1, 2015, Bartleby Corp. issued 5%, 10-year bonds with a face value of $3,000,000 at 104%. On October 1 and April 1, interest is paid. Any premiums or discounts are amortized on a straight-line basis. Which of the following will you include in your entry to record the issuance of the bonds?

Credit of $120,000 to premium on bonds payable

Credit of $75,000 to interest payable

Debit of $120,000 to discount on bonds payable

Credit of $2,880,000 to bonds payable

Credit of $75,000 to interest payable

Debit of $120,000 to discount on bonds payable

Credit of $2,880,000 to bonds payable