Yanik Corporation Issues 5,000, 10-Year, 8%, $1,000 Bonds Dated January

Multiple Choice

Yanik Corporation issues 5,000, 10-year, 8%, $1,000 bonds dated January 1, 2017, at 97. The journal entry to record the issuance will show a

A) debit to Cash of $5,000,000.
B) debit to Discount on Bonds Payable for $150,000.
C) credit to Bonds Payable for $4,850,000.
D) credit to Cash for $4,850,000.