XYZ Company purchased $100,000 of 10-year, 6 percent bonds at 105 with the intent of earning interest until the bonds matured. What would be the journal entry at the time of purchase?

A. Debit Short-Term Investments for $105,000, and credit Cash for

$105,000.

B. Debit Investment in Bonds for $105,000, and credit Cash for $105,000.

C. Debit Investment in Bonds for $100,000, debit Prepaid Interest for

$5,000, and credit Cash for $105,000.

D. None of the above