Pineapples Corp. is in need of cash. It issues bonds with a $2 million face value. The bonds have an 8.48% coupon rate. The market rate is 6%. The bonds have a life of 10 years, and are compounded semiannually. Pineapples Corp. issues the bonds on 1/1/2022.

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What is the journal entry Pineapples Corp. will record when it retires the bonds in 10 years (after/not including the final coupon payment):

Question 8 options:

	Dr. Premium $2,000,000 Cr. Cash $2,000,000
	Dr. Bonds Payable $2,000,000 Cr. Premium $2,000,000
	Dr. Cash $2,000,000 Cr. Bonds Payable $2,000,000
	Dr. Bonds Payable $2,000,000 Cr. Cash $2,000,000