Control Corporation issued $390,000 of 10%, 10-year bonds for 102. The entry to record the issuance of the bonds includes a:

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When bonds are issued at a premium (in this case, for 102, meaning 102% of the face value), the company receives more cash than the face value of the bonds. The face value is $390,000, and selling them for 102% means the company received 102% of $390,000, which is $397,800. The difference between the cash received ($397,800) and the face value of the bonds ($390,000) is the premium on bonds payable, which is $7,800. This premium is credited to the "Premium on Bonds Payable" account, reflecting that it is a liability that will be amortized over the life of the bonds.

Control Corporation Issued $390,000 of 10%, 10-Year Bonds for 102