The journal entry to record the issance of a bond at par value is: debit Bonds Payable; credit Cash debit Cash; credit Bond Interest Expense debit Bond Interest Expense; credit Cash debit Cash; credit Bonds Payable Question 4 (1 point) Saved The journal entry to record the issance of a bond at a premium is: debit Cash; debit Premium on Bonds Payable; credit Bonds Payable; credit Bond Interest Expense Odebit Cash; credit Premium on Bonds Payable; credit Bonds Payable debit Cash; credit Bonds Payable debit Cash; debit Premium on Bonds Payable; credit Bonds Payable

We receive money while issuing bonds. Bonds will also create an obligation to pay in the future.

Therefore,

Journal entry to record issuance of bond at par is:

Debit cash and credit bonds payable

4th option is the correct answer.

Q4) If the bond is issued at premium, we receive cash which includes par value of bond and premium. However, the obligation to pay off would only be the par value of the bond and the premium will appear as income to the entity.

Therefore,

Journal entry will be

Debit cash, Credit premium on bonds payable, credit bonds payable.

2nd option is the correct answer.