A company prepared the following journal entry:

Dr: Interest expense 10,000

Cr: Discount on bonds payable 2,000

Cr: Cash 8,000

Which of the following statements correctly describes the effect of this journal entry on

the financial statements?

A. The bonds payable book value increases by $8,000.

B. CFFF decreases by $2,000.

C. The bonds payable book value decreases by $2,000.

D. CFFO decreases by $8,000.