Acme, Inc. issues $100,000 of 10%, five-year bonds that pay interest semiannually. The market rate of...

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Acme, Inc. issues $100,000 of 10%, five-year bonds that pay interest semiannually. The market rate of interest is 8%. Acme, Inc. actually receives $108,115 upon issuance. What is the journal entry to record the issuance of these bonds? a) Debit Cash $108,115 Credit Discount on Bonds Payable $8,115 Credit Bonds Payable $100,000 O b) Debit Cash $108,115 Credit Premium on Bonds Payable $8,115 Credit Bonds Payable $100,000 Oc) Debit Cash $100,000 Credit Discount on Bonds Payable $8,115 Credit Bonds Payable $118,115 O d) Debit Cash $100,000 Credit Premium on Bonds Payable $8,115 Credit Bonds Payable $118,115 Acme, Inc. issues $100,000 of 10%, five-year bonds that pay interest semiannually. The market rate of interest is 8%. Acme, Inc. actually receives $108,115 upon issuance. What is the journal entry to record the issuance of these bonds? a) Debit Cash $108,115 Credit Discount on Bonds Payable $8,115 Credit Bonds Payable $100,000 O b) Debit Cash $108,115 Credit Premium on Bonds Payable $8,115 Credit Bonds Payable $100,000 Oc) Debit Cash $100,000 Credit Discount on Bonds Payable $8,115 Credit Bonds Payable $118,115 O d) Debit Cash $100,000 Credit Premium on Bonds Payable $8,115 Credit Bonds Payable $118,115

Answer rating: 100% (QA)

Solution The correct option is B ... View the full answer