The Entry Made by Trego Company to Record Issuance of the Bonds

Multiple Choice

The entry made by Trego Company to record issuance of the bonds payable at December 31, 2011, includes:

A) A debit to Cash of $1,000,000.
B) A credit to Premium on Bonds Payable of $20,000.
C) A credit to Bonds Payable of $1,020,000.
D) A credit to Bond Interest Payable of $20,000.