City issues $100,000 total bonds with the face value of $1,000. The interest rate is 10% on a semiannual rate. The bonds were issued for $102,000. Effective yield rate is 8%.

17. If the bond issue is reported on the government-wide statements the partial entry would be as follows:

A. Credit to cash of $102,000

B. Credit to premium on bonds of $2,000

C. Debit to discount on bonds of $2,000

D. Debit to cash for $102,000