On January 1, 2010, Jacob issues $600,000 of 11%, 15-year bonds at a price of 102. Six years later, on January 1, 2016, Jacob retires 30% of these bonds by buying them on the open market at 98. All interest is accounted for and paid through December 31, 2015, the day before the purchase. The straight-line method is used to amortize any bond discount or premium. What is the journal entry to record the issuance of the bonds on January 1, 2010?

Select one:

a. Cash...600,000 Bonds Payable...600,000

b. Bonds Payable...600,000 Cash...600,000

c. Cash....615,000 Bonds Payable...600,000 Premium on Bonds Payable...15,000

d. Cash...600,000 Premium on Bonds Payable...15,000 Bonds Payable...615,000

e. Cash...600,000 Discount on Bonds Payable...9,000 Bonds Payable...609,000