Problem: Yarborough Enterprises issued a $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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Problem Details

Yarborough Enterprises issued a $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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