The Journal Entry to Record $300,000 of Bonds That Were

Multiple Choice

The journal entry to record $300,000 of bonds that were issued at 104 would be to:

A) debit Cash, $312,000; credit Bonds payable, $312,000.
B) debit Cash, $312,000; credit Bonds payable, $300,000; credit Premium on bonds payable, $12,000
C) debit Cash, $300,000; credit Bonds payable, $300,000.
D) debit Cash, $300,000; debit Discount on bonds payable, $12,000; credit Bonds payable, $312,000.