Molina Corporation issues 4,000, 10-year, 8%, $1,000 bonds dated January 1, 2014, at 103. The journal entry to record the issuance will show a
A) debit to Cash of $4,000,000.
B) debit to Premium on Bonds Payable for $120,000.
C) credit to Bonds Payable for $4,000,000.
D) credit to Cash for $4,120,000.

Question

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The Answer of Molina Corporation issues 4,000, 10-year, 8%, $1,000 bonds dated January 1, 2014, at 103. The journal entry to record the issuance will show a
A) debit to Cash of $4,000,000.
B) debit to Premium on Bonds Payable for $120,000.
C) credit to Bonds Payable for $4,000,000.
D) credit to Cash for $4,120,000.

Molina Corporation Issues 4,000, 10-Year, 8%, $1,000 Bonds Dated January