Bonds with a Face Amount $1,000,000, Are Sold at 98

Multiple Choice

Bonds with a face amount $1,000,000, are sold at 98. The entry to record the issuance is

A) Cash 1,000,000 Premium on Bonds Payable 20,000
Bonds Payable 980,000
B) Cash 980,000 Premium on Bonds Payable 20,000
Bonds Payable 1,000,000
C) Cash 980,000 Discount on Bonds Payable 20,000
Bonds Payable 1,000,000
D) Cash 980,000 Bonds Payable 980,000