Desperate need help!!! resubmitted!?

Question

the question is (exactly as appears on my homework)

If $1,000,000 of 9% bonds are issued at 103 1/2, the amount of cash received from sale is????

possible answers:

1,090,000

965,000

1035,000

1,000,000

please help

Answer 1

$1,035,000

$1,000,000 x (103.5/100) = $1,035,000

If this is an accounting question, you would have the following entry:

Debit:  Cash  1,035,000

Credit:  Premium on Bonds Payable  35,000

Credit:  Bonds Payable  1,000,000

Good luck with the rest of your homework. :)