On January 1, 2020, ABC, Inc. issues a 5 year $100,000 face value bond with a 10% coupon rate, receiving cash of $107,987. The interest is payable annually each December 31. The market (effective) interest rate is 8%. Assume the effective- interest amortization is used. Question 3) Which of the following journal entries correctly records the sale of bonds? (A) Cash 107.987 Discount on Bond Payable 7,987 Bond Payable 100,000 Cash 107.987 Premium on Bond Payable 7,987 Bond Payable 100,000 Cash 100,000 Bond Payable 100,000 (D) Bond Payable 100,000 100,000 Option D Option A Option Otac