The Journal Entry to Record $330,000 of Bonds That Were

Multiple Choice

The journal entry to record $330,000 of bonds that were issued at 97 would be to:

A) debit Cash, $330,000; credit Bonds payable, $320,100; credit Premium on bonds payable, $9,900.
B) debit Cash, $320,100; credit Bonds payable, $320,100.
C) debit Cash, $330,000; credit Bonds payable, $330,000.
D) debit Cash, $320,100; debit Discount on bonds payable, $9,900; credit Bonds payable, $330,000.