The entry to record issuance of the bonds

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Reference no: EM131452376

On June 1, Surge Corporation issued $100,000 of 9%, 5-year bonds. The bonds are dated June 1, 2011. The bonds were issued at 96, and pay interest on December 1 and June 1. The entry to record issuance of the bonds is:

a. DEBIT: Cash, 100,000 / CREDIT: Bonds Payable, 100,000

b. DEBIT: Cash, 96,000 / DEBIT: Discount on Bonds Payable, 4,000 / CREDIT: Bonds Payable, 100,000

c. DEBIT: Cash, 104,000 / CREDIT: Bond Interest Payable, 4,000 / CREDIT: Bonds Payable, 100,000

d. DEBIT: Cash, 96,000 / DEBIT: Bond Interest Expense, 4,000 / CREDIT: Bonds Payable, 100,000

Reference no: EM131452376

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