On January 1, 2015 Y Knott Inc issued $100,000 in bonds payable with an interest coupon of 10%. Since the market rate of interest was close to 12%, Y Knott had to issue the bonds at 94(that is the cash received was 94% of face amount). The bonds pay annual interest on January 1 of each year starting 1/1/2016 and principle is due in full on 1/1/2018. The company uses a straight line method to amortize bond discounts in premiums. The journal entry to record the issuance of the bonds includes a: debit to premium on bonds payable, debit to retained earnings, debit to discount on bonds payable, none of the other answers are correct?