Bonds Issued At Par, Discount, Premium Practice Test

A for-profit technology company issued $500,000 of 8% bonds on January 1, 20X1, at 105 when the market interest rate was 6%. The bonds pay cash interest annually each December 31 and mature in 10 years. In accordance with FASB ASC, which journal entry should the issuer record at issuance to recognize the bonds issued at a premium?

A for-profit construction company issued $1,000,000 of 6% bonds on January 1, 20X1, at 97 when the market interest rate was 7%. The bonds pay cash interest annually each December 31 and mature in 5 years. In accordance with FASB ASC, what is the correct journal entry at issuance to record the bonds issued at a discount?