On January 1, a corporation issues for cash $100,000 of 6%, five-year bonds with interest of $3,000 payable semiannually. The market rate of interest at the time the bonds are issued is 5%. Assume the bonds sell for $103,769 . What is the entry to record the issuance of the bonds?
a. Cash 98,203
Discount on Bonds Payable 1,797
Bonds Payable 100,000
b. Bonds Payable 100,000
Cash 100,000
c. Cash 103,769
Bonds Payable 100,000
Premium on Bonds Payable 3,769
d. Cash 100,000
Bonds Payable 100,000
c
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