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Arrowplan Inc. prepares its financial statements in accordance with ASPE. It issued $800,000 of 7.5%, 15-year bonds dated March 1, 2017, on May 1, 2017,

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Arrowplan Inc. prepares its financial statements in accordance with ASPE. It issued $800,000 of 7.5%, 15-year bonds dated March 1, 2017, on May 1, 2017, at 97 1/2 plus accrued interest. If Arrowplan Inc. uses the straight-line method of amortization, the entry to retire the bonds on the maturity date would include a: a) credit to Discount on Bonds Payable for $20,000 O b) credit to Cash for $800,000 c) debit to Premium on Bonds Payable for $20,000 d) debit to Bonds Payable for $780,000

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