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What the journal entry that would be made to record issue

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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 to record the issue of these bonds?

?a. a debit to Cash for $134,600

?b. a credit to Bonds Payable for $200,000

?c. a credit to Premium on Bonds Payable for $98,106

?d. a credit to Cash for $232,706

Reference no: EM132751877

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