[The Following Information Applies to the Questions Displayed Below

Multiple Choice

[The following information applies to the questions displayed below.]
Trego Company issued,on December 31,2018,$1,000,000 face value,4%,5-year bonds.Interest will be paid semiannually each June 30 and December 31.The bonds sold at a price of 102;Trego uses the straight-line method of amortizing bond discount or premium.
-The entry made by Trego Company to record issuance of the bonds payable at December 31,2018,includes:

A) A debit to Cash of $1,000,000.
B) A credit to Premium on Bonds Payable of $20,000.
C) A credit to Bonds Payable of $1,020,000.
D) A credit to Bond Interest Payable of $20,000.