Answer:
Dr Cash   $5,400,000
Cr Bonds payable            $5,000,000
Cr Premium on bonds payable  $400,000
Explanation:
The cash proceeds from the bond issuance is $5,400,000 which is divided $5,000,000 face value and $400,000 premium on bonds payable ($5,400,000-$5,000,000).
The appropriate accounting entries would to debit cash account with the total proceeds of $5,400,000 since cash has increased,while crediting bonds payable and premium on bonds payable with $5,000,000 and $400,000 respectively.
