Risky Plc Issues £8 Million in 5-Year,6%,semi-Annual Coupon Debentures in a Private

Multiple Choice

Risky Plc issues £8 million in 5-year,6%,semi-annual coupon debentures in a private placement.The rate of return required by the debenture holder is 8%.What is the journal entry to record the issue of the debentures (round to the nearest pound) ?

A) $$\begin{array} { | l | l | l | l | } \hline \mathrm { Dr } & \text { Cash } & 8000000 & \\\hline \mathrm { Cr } & \text { Debentures } & & 8000000 \\\hline\end{array}$$
B) $$\begin{array} { | l | l | l | l | } \hline \mathrm { Dr } & \text { Cash } & 7351128 & \\\hline \mathrm { Cr } & \text { Debentures } & & 7351128 \\\hline\end{array}$$
C) $$\begin{array} { | l | l | l | l | } \hline \mathrm { Dr } & \text { Cash } & 9297743 & \\\hline \mathrm { Cr } & \text { Debentures } & & 9297743 \\\hline\end{array}$$
D) $$\begin{array} { | l | l | l | l | } \hline \mathrm { Dr } & \text { Cash } & 8648872 & \\\hline \mathrm { Cr } & \text { Debentures } & & 8648872 \\\hline\end{array}$$