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On January 1, a company issues bonds dated January 1 with a par value of...

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Accounting

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On January 1, a company issues bonds dated January 1 with a par value of $250,000. The bonds mature in 5 years. The contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The market rate is 8% and the bonds are sold for $260,148. The journal entry to record the issuance of the bond is Multiple Choice Debit Bonds Payabie $250,000, cetit Bond Interest Expense $10348; credit Cash $260,348 Debit Cath $250.000 debit Premium on Bonds Payable 510,148; credit Bonds Payable $260,148. Debt Coah $260,148, credit Bands Payable 5260348 Debit Cash $260,148, credit Premium on Bonds Payable 510,148, credit Bonds Payable $250,000. Debit Cash $260.148. credit Discount on Bonds Payable $10.148: credit Bonds Payable $250,000

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