Your Company Issues $50,000 of One-Year,10% Bonds at Face Value

Multiple Choice

Your company issues $50,000 of one-year,10% bonds at face value.The journal entry to record this transaction will include a debit to:

A) Cash and a credit to Bonds Payable for $50,000.
B) Cash and a credit to Bonds Payable for $55,000.
C) Cash for $55,000,a credit to Bonds Payable for $50,000,and a credit to Interest Payable for $5,000.
D) Cash for $50,000,a debit to Interest Expense for $5,000,and a credit to Bonds Payable for $55,000.