Share Com 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, 2018 A) Cash 5.000.000 Bonds Payable 5,000,000 B) Cash 5.200,000 Bonds Payable 5,200,000 C) Premium on Bonds Payable 200,000 Cash 5,000,000 Bonds Payable 5,200,000 D) Cash 5,200,000 Bonds Payable Premium on Bonds Payable 5,000,000 200,000 41. The discount on bonds payable or premium on bonds payable is shown on the balance sheet as an adjustment to bonds payable to arrive at the carrying value of the bonds Indicate the appropriate addition or subtraction to bonds payable. Premium on Discount on Bonds Pavable Bonds Payable Add Add b Dedud Add Deduct d Deduct Dedud 42 Bond interest PAID is A) higher when bonds sell at a discount and lower when bonds well at a premam B) the same whether bonds sell at a discount or a premium C) higher when bonds sell at a discount D) lower when bonds sell at a premium D Focus 1:03 PM 12/17/2020