Answer:
The issuer will record the sale with a CREDIT to PREMIUM on Bonds Payable
Step-by-step explanation:
Based on the information in a situation where the company issues the amount of $90,000, 5year bonds in which interest are been paid semiannually on both June 30 as well as December 31 which means that if the issuer accepts the amount of $95,000 for the bonds, the issuer will have to record the sale with a CREDIT to PREMIUM on Bonds Payable in the amount of $5,000 calculated as : ($95,000 bonds-$90,000 bonds).
