Pace Company Issued Bonds with a Face Value of $200,000

Multiple Choice

Pace Company issued bonds with a face value of $200,000 at 97.How does the issuance affect the company's accounting equation?

A) Assets and liabilities would both increase by $200,000.
B) Assets and liabilities would both increase by $194,000.
C) Assets would increase by $194,000 and liabilities would increase by $200,000.
D) Assets would increase by $200,000,and liabilities would increase by $194,000.