On January 1, 2016, The Hanover Corporation issued $70,500 of 8%, 5-year bonds at 97. Hanover uses the straight-line method of bond discount amortization. The interest payments are due on December 31 each year. The journal entry used to record the issuance of the bond and the receipt of cash would be:

A.	Cash	70,500
	Bonds Payable		70,500
B.	Cash	70,500
	Discount on Bonds Payable		423
	Bonds Payable		70,077
C.	Cash	70,077
	Discount on Bonds Payable	423
	Bonds Payable		70,500
D.	Cash	68,385
	Discount on Bonds Payable	2,115
	Bonds Payable		70,500