Gross Company sold $100,000 of long-term bonds in the open market for $108,000. The entry to record the transaction would be:

• DR Cash	100,000
  DR Premium on Bonds Payable	8,000
  CR Bonds payable		108,000

• DR Bonds payable	108,000
  CR Cash		108,000

• DR Accounts payable	108,000
  CR Bonds payable		108,000

• DR Cash	108,000
  CR Premium on Bonds Payable		8,000
  CR Bonds payable		100,000

Answer rating: 100% (QA)

Debit Credit Cash 108000 Premium on Bonds Pay... View the full answer