On January 1, 2015, Smith Corporation issued $5,000,000, 10-…

Questions

On Jаnuаry 1, 2015, Smith Cоrpоrаtiоn issued $5,000,000, 10-year, 8% bonds at 102. Interest is payable annually on January 1. The journal entry to record this transaction on January 1, 2015 is a.  Cash....................................................................................... 5,000,000                Bonds Payable.............................................................                        5,000,000   b.  Cash....................................................................................... 5,100,000                Bonds Payable.............................................................                        5,100,000   c.  Premium on Bonds Payable.................................................. 100,000       Cash......................................................................................5,000,000                Bonds Payable.............................................................                        5,100,000   d.  Cash....................................................................................... 5,100,000                Bonds Payable.............................................................                        5,000,000                Premium on Bonds Payable.........................................                           100,000

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