Bonds with a Face Amount $1,000,000, Are Sold at 108

Multiple Choice

Bonds with a face amount $1,000,000, are sold at 108. The entry to record the issuance is

A) Cash 1,000,000 Premium on Bonds Payable 80,000
Bonds Payable 1,080,000
B) Cash 1,080,000 Premium on Bonds Payable 80,000
Bonds Payable 1,000,000
C) Cash 1,080,000 Discount on Bonds Payable 80,000
Bonds Payable 1,000,000
D) Cash 1,080,000 Bonds Payable 1,080,000