Wasser Company issues $500,000, 8% convertible bonds for $510,000. Without the conversion feature, the bonds would issue at par. On the date of issuance, Wasser should:
a) Debit Cash $510,000 and credit Convertible Bonds Payable $500,000 and Premium on Bonds Payable $10,000.
b) Debit Cash $500,000 and credit Convertible Bonds Payable $500,000.
c) Debit Cash $510,000 and credit Convertible Bonds Payable $510,000.
d) Debit Cash $500,000 and credit Premium on Bonds Payable $10,000.
