Multiple Choice Question 68 On January 1, 2020, Bonita Industries issued $5400000, 10-year, 4% bonds at 102. Interest is payable annually on January 1. The journal entry to record this transaction on January 1, 2020 is

Answer and Explanation:

The journal entry is shown below:

Cash ($5,400,000 × 102%) $5,508,000  

        To Bonds Payable $5,400,000

        To Premium on Bonds Payable $108,000

(To record the issuance of the bond payable)

In the above journal entry,  the cash is debited as it increased the assets and credited the bond payable and premium on bond payable as it increased the liabilities

you can put this in your 11 sentence summary

" most of the money would be invested in innovation, economic convergence."