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Solarstar Corp issued a 5% 10-year $1,500,000 bond on July 1, 2018. The market interest rate is 6% and the bond pays interest semi-annually. Solarstar
Solarstar Corp issued a 5% 10-year $1,500,000 bond on July 1, 2018. The market interest rate is 6% and the bond pays interest semi-annually. Solarstar received $1,438,547 cash on July 1, 2018. Which is the correct journal entry to record the issuance of the bond on July 1, 2018?
Select one: a. DR Cash $1,500,000 CR Premium $61,453 CR Bond Payable $1,438,547 b. DR Cash $1,500,000 CR Bond Payable $1,500,000 c. None of these choices are correct d. DR Cash $1,438,547 DR Discount $61,453 CR Bond Payable $1,500,000
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