Tinhua Corporation Issues 5,000, 10-Year, 6%, $1,000 Face Value Bonds

Multiple Choice

Tinhua Corporation issues 5,000, 10-year, 6%, $1,000 face value bonds dated January 1, 2013 at 95. The journal entry to record the issue of the bonds will include a

A) debit to Cash for $5,000,000.
B) debit to Interest Expense for $250,000.
C) credit to Bonds Payable for $4,750,000.
D) credit to Bonds Payable for $5,000,000.