The Amazing Widget Company issues $539,000 of 7%,10-year bonds at 104 on March 31,2017.The bonds pay interest on March 31 and September 30.Assume that the company uses the straight-line method for amortization.The journal entry to record the issuance includes a ________.
A) debit to Cash for $539,000
B) credit to Bonds Payable for $560,560
C) debit to Premium on Bonds Payable for $21,560
D) debit to Cash for $560,560
Correct Answer:
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