The Amazing Widget Company issues $538,000 of 7%,10-year bonds at 108 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 $538,000
B) credit to Bonds Payable for $581,040
C) debit to Premium on Bonds Payable for $43,040
D) debit to Cash for $581,040
Correct Answer:
Verified
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