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On January 1, 2015, a company issues 5-year bonds with a stated interest rate of...

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Accounting

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On January 1, 2015, a company issues 5-year bonds with a stated interest rate of 8% and records the following journal entry: Dr. Cash $535,000 Cr. Bonds payable $500,000 Cr. Premium on bonds payable $35,000 The bonds pay interest annually, on December 31, which is when the company's fiscal year ends. The journal entry made on January 1, 2020, when the bonds mature will include: O a. A credit to cash for $500,000. O b. A debit to loss on retirement of bonds of $35,000. c. A debit to bonds payable for $535,000. Od. A credit to gain on retirement of bonds of $35,000

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