The Amazing Widget Company issues $538,000 of 7%, 10-year bonds at 108 on March 31, 2017. The bonds pay interest on March 31 and September 30. Assume that the company uses the straight-line method for amortization. The journal entry to record the issuance includes a ________.

credit to Bonds Payable for $581,040 debit to Premium on Bonds Payable for $43,040 debit to Cash for $538,000 debit to Cash for $581,040

Which of the following describes a debenture? a bond that is not backed by specific assets a bond that gives the bondholder a claim for specific assets a bond that matures at one specified time a bond that matures in installments at regular intervals