Question: What would be the required journal entry on the date of issuance if a company issues $100,000 five-year, 10% bond for $96,231 and the interest

What would be the required journal entry on the date of issuance if a company issues $100,000 five-year, 10% bond for $96,231 and the interest is to be paid semiannually?

A. debit (1) Premium on Bonds Payable $376.90 and credit (2) Interest Expense $376.90

B. debit (1) Premium on Bonds Payable $3,769 and credit (2) Discount on Bonds Payable $3,769

C. debit (1) Bonds Payable $3,769 and (2) credit Interest Expense $3,769

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