A company received cash proceeds of $206,948 on a bond issue with a par value of $200,000.

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A company received cash proceeds of $206,948 on a bond issue with a par value of $200,000. The difference between par value and issue price for this bond is recorded as a:

a) Debit to Premium on Bonds Payable.

b) Credit to Interest Income.

c) Credit to Discount on Bonds Payable.

d) Credit to Premium on Bonds Payable.

e) Debit to Discount on Bonds Payable.

Related Book For answer-question

Advanced Accounting

ISBN: 978-0133451863

12th edition

Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith

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Posted Date: Aug 30, 2018 07:47 AM

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A company received cash proceeds of $206,948 on a bond issue with a par value of $200,000.

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d Credit to Premium on Bon... View the full answer

Advanced Accounting

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