Question 40 On January 1, 20--, Waterway Corporation issued $5,000,000, 10-year, 8% bonds at 104. Interest is payable annually on January 1. The journal entry to record this transaction on January 1, 20-- is O Debit Cash 5,000,000. Credit Bonds Payable 5,000,000. O Debit Cash 5,200,000. Credit Bonds Payable 5,200,000. O Debit Premium on Bonds Payable 200,000. Debit Cash 5,000,000. Credit Bonds Payable 5,200,000. O Debit Cash 5,200,000. Credit Bonds Payable 5,000,000. Credit Premium on Bonds Payable 200,000