Hefley Corporation issued a 10%,$400,000,8-year bond at 104.The entry to record the issuance transaction is to:
A) debit Cash $400,000;credit Bonds Payable $400,000.
B) debit Cash $416,000;credit Bonds Payable $416,000.
C) debit Cash $416,000;credit Bonds Payable $400,000;credit Premium on Bonds Payable $16,000.
D) debit Cash $400,000;debit Premium on Bonds Payable $16,000;credit Bonds Payable $416,000.
Correct Answer:
Verified
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