Question

Ubquizzu JOULLO 200... rmining your course grade. n after the chapter's graded quiz closes, an identical ungraded quiz opens so that students can continue using! ne pools of quiz questions to study Graded and ungraded quizzes draw from the same pools of questions nching assistants (TAs) are also available to help students with graded and ungraded quiz questions. 0.5 pts D Question 7 York Corporation issues $3,500,000 of 20-year, 6% bonds dated January 1 at 107. The journal entry to record the issuance will include a debit to Cash for $3,500,000 a debit to Interest Expense for $245,000. a credit to Cash for $3,745,000 a credit to Bonds Payable for $3,500,000 a debit to Premium on Bonds Payable for $245,000 Next Previous Quiz saved at 2:55pm Submit Quiz MacBook Air

Answer 1

Option C. a credit of Bond Payable $3,500,000. is the right answer
Workings:
Cash ($3,500,000 * 107%)	$3,745,000
Bond Payable		$3,500,000
Bond Premium		$245,000
(To record issue of bond)