Yanik Corporation Issues 4,000, 10-Year, 8%, $1,000 Bonds Dated January

Multiple Choice

Yanik Corporation issues 4,000, 10-year, 8%, $1,000 bonds dated January 1, 2014, at 97. The journal entry to record the issuance will show a

A) debit to Cash of $4,000,000.
B) debit to Discount on Bonds Payable for $120,000.
C) credit to Bonds Payable for $3,880,000.
D) credit to Cash for $3,880,000.