Question $4$

$1pts$

Mitchell Inc. received $$324,333$ from the issuance of $300,10\%,$ $$1,000$ bonds on January $1,2020.$ The bonds pay cash interest semiannually each June $30,$ and December $31,$ and were issued to yield $8\%.$ The bonds mature December $31,2024,$ and the company uses the effective interest method to amortize bond discounts or premiums.

The journal entry on January $1,2020$ to record the bond issuance includes $q,$

A credit to Cash account by $$324,333.$

A credit Premium on Bonds Payable account by $$24,333.$

A debit to Bonds Payable account by $$300,000.$

A debit to Discount on Bonds Payable account by $$24,333.$