Mercury Corporation Issues a $3,000,000, 10-Year, 8% Bond Dated January

Multiple Choice

Mercury Corporation issues a $3,000,000, 10-year, 8% bond dated January 1 at 103. The journal entry to record the issuance will include a:

A) credit to cash for $3,090,000.
B) debit to cash for $3,000,000.
C) credit to premium on bonds payable for $90,000.
D) credit to bonds payable for $3,090,000.