Answer:
Explanation:
The journal entries are shown below:
Cash A/c Dr $582,000       ($600,000 × 0.97)
Discount on Bonds Payable A/c Dr $18,000
    To Bonds payable A/c   $600,000
(Being the issuance of the bond is recorded and the remaining balance is debited to the discount on bond payable account)
Cash A/c Dr $612,000       ($600,000 × 1.02)
    To Bonds payable A/c   $600,000
    To Premium on bonds payable A/c $12,000
(Being the issuance of the bond is recorded and the remaining balance is credited to the premium on bond payable account)
