Arrowplan Inc.prepares its financial statements in accordance with ASPE.It issued $800,000 of 7.5%,15-year bonds dated March 1,2017,on May 1,2017,at 97 1/2 plus accrued interest.If Arrowplan Inc.uses the straight-line method of amortization,the entry to retire the bonds on the maturity date would include a:
A) debit to Bonds Payable for $780,000
B) credit to Cash for $800,000
C) credit to Discount on Bonds Payable for $20,000
D) debit to Premium on Bonds Payable for $20,000
Correct Answer:
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