Firm A issued a bond with a face value of $1,000 and an issue price of $855.78. What is the journal entry for the bond issuance?

Select one:

Cash 1,000 Discount on bonds payable 144.22 Bonds payable 855.78

Cash 855.78 Discount on bonds payable 144.22 Bonds payable 1,000

Bonds payable 855.78 Discount on bonds payable 144.22 Cash 1,000

Cash 1,000 Premium on bonds payable 144.22 Bonds payable 855.78