Yarborough Enterprises issued $500,000 of bonds payable with a 10% interest rate at a price of 104. The journal entry to record the issuance of this bond included a:
a. Debit to Cash, $500,000
b. Debit to Bonds Payable, $500,000
c. Credit to Premium on Bonds Payable, $20,000
d. Credit to Cash, $500,000
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