Clayton Corporation Made the Following Entry in Its General Journal

Multiple Choice

Clayton Corporation made the following entry in its general journal:

Which of the following describes the above transaction?

A) Clayton records interest expense and amortization of discount on bonds payable.
B) Clayton issues bonds with a face value of $5,400 for $5,000 cash.
C) Clayton records annual interest and amortization of premium on bonds.
D) Clayton redeems callable bonds when the carrying value is $5,400.