Exhibit 14-13 Yoho Corp. Issued $500,000 of Its Ten-Year 6% Bonds at Bonds

Multiple Choice

Exhibit 14-13
Yoho Corp. issued $500,000 of its ten-year 6% bonds at 104. Each $1,000 bond carries ten warrants. Each warrant allows the holder to purchase one share of $10 par common stock for $50. Following the sale, relevant market values were:
-Refer to Exhibit 14-13. The entry to record the sale of the bonds would include a

A) debit to Discount on Bonds Payable for $10,000.
B) credit to Bonds Payable for $490,000.
C) debit to Cash for $560,000.
D) credit to Common Stock Warrants for $65,000.