5 (1 point) Bonds Question: Torrance Corporation issues 10-year bonds with a face value of $12,000,000 and a stated annual interest rate of 7%. The bonds pay interest annually on December 31. The market rate of interest on the date of issue is 8%. What journal entry will the company make to record the bond issue? Dr. Cash 12,000,000 Cr. Bonds Payable 12,000,000 Dr. Cash 12,842,830 Cr. Discount on Bonds Payable 842,830 Cr. Bonds Payable 12,000,000 Dr. Cash 11,194,790 Dr. Discount on Bonds Payable 805,210 Cr. Bonds Payable 12,000,000 Dr. Cash 11,184,580 Dr. Discount on Bonds Payable 815,420 Cr. Bonds Payable 12,000,000