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Thunder Corporation Is Authorized to Issue $500,000 of 6 Percent,10-Year

Question 94

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Thunder Corporation is authorized to issue $500,000 of 6 percent,10-year bonds dated July 1,2014,with interest payments on December 31 and June 30.When the bonds are issued on November 1,2014,Thunder Corporation receives cash of $515,000,including accrued interest.The journal entry to record the issuance of the bonds would include


A) $15,000 bond premium.
B) $5,000 bond premium.
C) $15,000 bond discount.
D) no bond premium or discount.

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