Martinez Corp. issues 4800, 10-year, 8%, $1000 bonds dated January 1, 2020, at 103. The journal entry to record the issuance will show a which number and why? 1. debit to Cash of $4800000. 2. debit to Premium on Bonds Payable for $144000. 3. credit to Cash for $4944000. 4. credit to Bonds Payable for $4800000.

Martinez Corp. issues 4800, 10-year, 8%, $1000 bonds dated January 1, 2020, at 103. The journal entry to record the issuance will show a which number and why? 1. debit to Cash of $4800000. 2. debit to Premium on Bonds Payable for $144000. 3. credit to Cash for $4944000. 4. credit to Bonds Payable for $4800000.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 7MCQ

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