On January 1,2012,Davie Services Issued $20,000 of 8% Bonds That

Multiple Choice

On January 1,2012,Davie Services issued $20,000 of 8% bonds that mature in five years.They were sold at a premium,for a total of $20,750.On January 1,2017,when the bonds mature,Davie Services will make the final principal payment.That entry will include which of the following?

A) Debit Bond premium for $250 and credit Cash for $250.
B) Debit Bonds payable for $20,750 and credit Cash for $20,750.
C) Debit Bonds payable for $20,000 and credit Cash for $20,000.
D) Debit Bonds payable for $20,000, credit Bond premium for $750 and Credit Cash for $19,250.