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Gates Industries need to raise capital for expansion purpose. Management is considering issuing $1,000,000 of...

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Accounting

  1. Gates Industries need to raise capital for expansion purpose. Management is considering issuing $1,000,000 of 7.5%, 20-year bonds dated June 1, 2023, with interest payment dates of December 1 and June Gates year-end is December 31. The entry to record the issuance of the bonds on June 1, 2023, at 103 3/8 includes a:
    1. Debit to bonds payable for $1,000,000
    2. Debit to premium on payable for $33,750
    3. Credit to premium on bonds payable for $30,375
    4. Debit to cash for $1,033,750

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