Final answer:
To record the issuance of bonds at a premium, Werner Inc. will debit Cash for the total amount received, credit Bonds Payable for the face value of the bonds, and credit Premium on Bonds Payable for the premium amount. Option b, c, d.
Step-by-step explanation:
When a company like Werner Inc. issues bonds at a premium, it means that the bonds are sold for a price higher than their face value. For example, a bond with a face value of $1,000 might be issued for $1,050.
The journal entry to record this transaction should include a debit to Cash for the amount received, a credit to Bonds Payable for the face value of the bonds, and a credit to Premium on Bonds Payable for the amount received in excess of the face value.
The entry would not include a credit to Interest Revenue as this relates to earnings on interest, not the issuance of bonds.
The journal entry would look something like this:
Debit Cash for the total cash received
Credit Bonds Payable for the face value of the bonds
Credit Premium on Bonds Payable for the amount received over the face value
Option b, c, d.