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Five thousand bonds with a face value of $1000 each, are sold at 105. The entry to record the issuance is Cash 5250000 Bonds Payable 5250000 Cash 5000000 Premium on Bonds Payable Bonds Payable 250000 5250000 O Cash Premium on Bonds Payable Bonds Payable 5250000 250000 5000000 O Cash 5250000 Discount on Bonds Payable Bonds Payable 250000 5000000

Five thousand bonds with a face value of $1000 each, are sold at 105. The entry to record the issuance is Cash 5250000 Bonds Payable 5250000 Cash 5000000 Premium on Bonds Payable Bonds Payable 250000 5250000 O Cash Premium on Bonds Payable Bonds Payable 5250000 250000 5000000 O Cash 5250000 Discount on Bonds Payable Bonds Payable 250000 5000000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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i picked the first one. explain to me why the answer is the third solution as opposed to the first one?

Five thousand bonds vith a face value of $1000 each, are sold at 105. The entry to record the issuance is Cash 5250000 Bonds Payable 5250000 Cash 5000000 Premium on Bonds Payable Bonds Payable 250000 5250000 Cash 5250000 Premium on Bonds Payable Bonds Payable 250000 5000000 Cash Discount on Bonds Payable Bonds Payable 5250000 250000 5000000
Transcribed Image Text:Five thousand bonds vith a face value of $1000 each, are sold at 105. The entry to record the issuance is Cash 5250000 Bonds Payable 5250000 Cash 5000000 Premium on Bonds Payable Bonds Payable 250000 5250000 Cash 5250000 Premium on Bonds Payable Bonds Payable 250000 5000000 Cash Discount on Bonds Payable Bonds Payable 5250000 250000 5000000
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