What the journal entry to record the transaction is

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problem 1: On January 1, 2018, Carter Corporation issued $5,000,000, 10-year, 8% bonds at 102. Interest is payable annually on January 1. The journal entry to record this transaction (bond issuance) is:

Option 1: Cash.............................................................................................. 5,000,000
Bonds Payable................................................................ 5,000,000

Option 2: Cash.............................................................................................. 5,100,000
Bonds Payable................................................................ 5,100,000

Option 3: Cash ....................................................................................... 5,000,000
Premium on Bonds Payable............................................................ 100,000
Bonds Payable................................................................ 5,100,000

Option 4: Cash.............................................................................................. 5,100,000
Bonds Payable................................................................ 5,000,000
Premium on Bonds Payable............................................. 100,000

Reference no: EM132794231

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