Fuku Inc. is a Japanese firm located in Chiba. The firm's accounting period is from January 1 to December 31 each year. The firm issues 2,000,000, 10-year, 8%, JPY 1,000 bonds dated January 1, 2018, at 98. The firm's accountant shall make the journal entry to record the issuance including a

Select one:

a. debit to Cash for JPY 1,960,000,000.

b. debit to Cash of JPY 2,000,000,000.

c. credit to Discount on Bonds Payable for JPY 40,000,000.

d. credit to Bonds Payable for JPY 2,040,000,000.