The Journal Entry to Record $400,000 of Bonds That Were

Multiple Choice

The journal entry to record $400,000 of bonds that were issued at 107 would be to:

A) debit Cash, $400,000; credit Bonds payable, $400,000.
B) debit Cash, $428,000; credit Bonds payable, $428,000.
C) debit Cash, $428,000; credit Bonds payable, $400,000; credit Premium on bonds payable, $28,000.
D) debit Cash, $400,000; debit Discount on bonds payable, $28,000; credit Bonds payable, $428,000.