Question

On October 1, 20XX, Bartley Corporation issued 5%, 10-year bonds with a face value of $500,000 at $520,000. The entry to record the issuance of the bonds would include a:___________

a) credit of $20,000 to Premium on Bonds Payable
b) credit of $520,000 to Bonds Payable
c) debit of $20,000 to Discount on Bonds Payable
d) credit of $480,000 to Bonds Payable

Answer 1

b) credit of $520,000 to Bonds Payable

Step-by-step explanation:

Date Accounts titles and explanation Debit Credit

Oct. 1 Cash $520,000

Premium on bonds payable $20,000

Bonds payable $500,000

(To record the issuance of bond at premium)