Miranda Corporation issued $200,000 of 12%,10-year bonds for $220,000.The entry to record the issuance of the bonds includes a:

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The premium on bonds payable is the excess amount paid by the bondholders over the face value of the bonds. In this case, the bonds were issued for $220,000 ($20,000 more than the face value of $200,000), so the entry to record the issuance of the bonds would be:

Debit: Cash $220,000
Credit: Bonds Payable $200,000
Credit: Premium on Bonds Payable $20,000

Miranda Corporation Issued $200,000 of 12%,10-Year Bonds for $220,000