A $260,000 Issue of Bonds That Sold for $255,000 Matures

Multiple Choice

A $260,000 issue of bonds that sold for $255,000 matures on June 25, 2020. The journal entry to record the payment of the bond on the maturity date is to:

A) debit Cash, $260,000; credit Bonds payable, $260,000.
B) debit Bonds payable, $260,000; credit Cash, $260,000.
C) debit Cash, $255,000; credit Bonds payable, $255,000.
D) debit Bonds payable, $255,000; credit Cash, $255,000.