On October 1, 2020Sheffield Corp.issued4%, 10-year bonds with a face value of $6000000at105. Interest is paid on October 1 and April 1, with any premiums or discounts amortized on a straight-line basis.

The entry to record the issuance of the bonds would include a credit of

$300000to Discount on Bonds Payable.

$120000to Interest Payable.

$5700000to Bonds Payable.

$300000to Premium on Bonds Payable.