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How the entry to record issuance of the bonds would include

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On October 1, 2017 Sunland Company issued 6%, 10-year bonds with a face value of $7970000 at 105. Interest is paid on October 1 and April 1, with any premiums or discounts amortized on a straight-line basis.

Question 1: The entry to record the issuance of the bonds would include a:

Option a. credit of $7571500 to Bonds Payable.

Option b. debit of $398500 to Discount on Bonds Payable.

Option c. credit of $239100 to Interest Payable.

Option d. credit of $398500 to Premium on Bonds Payable.

Reference no: EM132606809

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