Arco, Inc. issued $540,000 of 4%, 10-year convertible bonds at par on July 1, 2022. Each bond has a par value of $1,800. The bonds include the option for bondholders to convert each bond into 60 $1 par value shares of common stock beginning two years after the date of issue. The market price of the stock at the time of issue is $37 per share. What is the correct journal entry for the issue? A. Date July 1, 2022 Cash Account Debit 666,000 Credit Premium on Bonds Payable Bonds Payable 126,000 540,000 B. Date July 1, 2022 Account Cash Discount on Bonds Payable Bonds Payable Add. Paid-in Capital-Bene. Conv. Option C. Date Account July 1, 2022 Cash Discount on Bonds Payable Bonds Payable D. Date Account July 1, 2022 Cash Bonds Payable Debit Credit 540,000 126,000 540,000 126,000 Debit Credit 540,000 126,000 666,000 Add. Paid-in Capital-Bene. Conv. Option Debit Credit 666,000 540,000 126,000