A company issues $1,000,000 of bonds on January 1 at 97. Which journal entry is needed to record issuance of the bond?

Debit Cash for $1,000,000; Credit Bonds Payable for $1,000,000

Debit Bonds Payable for $1,000,000; Credit Cash for $1,000,000

Debit Cash for $970,000; Debit Discount on Bonds Payable for $30,000; Credit Bonds Payable for $1,000,000

Debit Cash for $1,000,000; Credit Discount on Bonds Payable for $30,000; Credit Bonds Payable for $970,000

A company issues a $1.000.000 three-year note. The stated and effective rates are both 10% Which journal entry should be used to record the annual interest in Year 3?

Debit Interest Expense for $300,000; Credit Cash for $300,000

Debit Cash for $100,000; Credit Interest Expense for $100,000

Debit Cash for $300,000; Credit Interest Expense for $300,000

Debit Interest Expense for $100,000; Credit Cash for $100,000