Use the Following Information to Answer Questions

Multiple Choice

Use the following information to answer questions
On July 1, 2010, Hardy Corp. issued $200,000 of 10%, 10-year bonds at 104. Interest is paid on January 1 and July 1, with any premiums or discounts amortized on a straight-line basis.
-The entry to record the issuance of the bonds would include a

A) debit of $8,000 to Discount on Bonds Payable.
B) debit of $20,000 to Accrued Interest Receivable.
C) credit of $8,000 to Premium on Bonds Payable.
D) credit of $10,000 to Accrued Interest Payable.
E) credit of $192,000 to Bonds Payable.