Texxon Corporation issued $400,000 of 20-year bonds with a payment rate of 12%, payments are made...

  

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Texxon Corporation issued $400,000 of 20-year bonds with a payment rate of 12%, payments are made semiannually. Assume that the market interest rate for similar investments is 10%. compounded semiannually. The journal entry that would be made to record the issue of these bonds would include: a. a credit to cash for $400,000 b. a debit to Bonds Payable for $400,000 c. a credit to Premium on Bonds Payable for $56,800 d. a credit to Premium on Bonds Payable for $68,616 Texxon Corporation issued $400,000 of 20-year bonds with a payment rate of 12%, payments are made semiannually. Assume that the market interest rate for similar investments is 10%. compounded semiannually. The journal entry that would be made to record the issue of these bonds would include: a. a credit to cash for $400,000 b. a debit to Bonds Payable for $400,000 c. a credit to Premium on Bonds Payable for $56,800 d. a credit to Premium on Bonds Payable for $68,616

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