Bonds with a face amount of $1,000,000 are sold at 106. The journal entry to record the issuance is:
a) Cash 1,000,000; Premium on Bonds Payable 60,000; Bonds Payable 1,060,000
b) Cash 1,060,000; Premium on Bonds Payable 60,000; Bonds Payable 1,000,000
c) Cash 1,060,000; Discount on Bonds Payable 60,000; Bonds Payable 1,000,000
d) Cash 1,060,000; Bonds Payable 1,060,000
