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What the journal entry that would be made

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Question - Texxon Corporation issued $200,000 of 10-year bonds with a payment rate of 6%; payments are made semiannually. Assume that the market interest rate for similar investments is 4%, compounded semiannually.

What the journal entry that would be made when the first payment is made to the bondholders?

?a. a debit to Premium on Bonds Payable for $6,000

?b. a debit to Cash for $4,000

?c. a debit to Interest Expense for $4,654.12

?d. a debit to Discount on Bonds Payable for $1,345.88

Reference no: EM132734960

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