Barkley Brothers Inc The Bonds Have a Stated Annual Interest Rate of 5

Multiple Choice

Barkley Brothers Inc. shows the following information on its balance sheet for December 31, 2017.
$$\begin{array} { | l | r | r | } \hline \text { Bonds payable } & \$ 100,000 & \\\hline \text { Less Unamortized discount } & 5,350 & \$ 94,650 \\\hline\end{array}$$
The bonds have a stated annual interest rate of 5 percent and will mature on December 31, 2019. The market value of the bonds as of December 31, 2017, is $98,167. Assume that Barkley retired the bonds by purchasing them on the open market. The journal entry to record this purchase would include:

A) a credit to Bonds Payable for $100,000.
B) a debit to Discount on Bonds Payable for $5,350.
C) a credit to Discount on Bonds Payable for $5,350.
D) a debit to Cash for $98,167.