Bonds with a Face Amount $1,000,000, Are Sold at 106

Multiple Choice

Bonds with a face amount $1,000,000, are sold at 106. The entry to record the issuance is

A) Cash 1,000,000 Premium on Bonds Payable 60,000
Bonds Payable 1,060,000
B) Cash 1,060,000 Premium on Bonds Payable 60,000
Bonds Payable 1,000,000
C) Cash 1,060,000 Discount on Bonds Payable 60,000
Bonds Payable 1,000,000
D) Cash 1,060,000 Bonds Payable 1,060,000