A company sells a bond with a face value of $10,000 and receives a premium of $800.Using the Simplified Approach (Effective-interest Method),the company would make the following journal entry:
A)Debit Cash for $10,800 and credit Bonds Payable,Net for $10,800.
B)Debit Cash for $10,800,credit Bonds Payable,net for $10,000,and credit Premium on Bond Payable for $800.
C)Debit Cash for $10,000,debit Interest Expense for $800,credit Bonds Payable,net for $10,000,and credit Premium on Bonds Payable for $800.
D)Debit Cash for $10,000,debit Interest Expense for $800,credit Bonds Payable for $10,000 and credit Premium on Bonds Payable for $800.

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The Answer of A company sells a bond with a face value of $10,000 and receives a premium of $800.Using the Simplified Approach (Effective-interest Method),the company would make the following journal entry:
A)Debit Cash for $10,800 and credit Bonds Payable,Net for $10,800.
B)Debit Cash for $10,800,credit Bonds Payable,net for $10,000,and credit Premium on Bond Payable for $800.
C)Debit Cash for $10,000,debit Interest Expense for $800,credit Bonds Payable,net for $10,000,and credit Premium on Bonds Payable for $800.
D)Debit Cash for $10,000,debit Interest Expense for $800,credit Bonds Payable for $10,000 and credit Premium on Bonds Payable for $800.

A Company Sells a Bond with a Face Value of $10,000