When Convertible Bonds Are Issued

Multiple Choice

When convertible bonds are issued,

A) the market price of the bond is credited to the Bonds Payable account.
B) the face amount of the bond is debited to Cash.
C) the difference between the market price of the bond and its face amount is recorded as premium or discount.
D) the difference between the market price of the bond and its face amount is recorded as a gain or loss.