On January 1, 2020, Roosevelt Company issued 12% bonds, having a maturity value of $500,000. The bonds provide the bondholders with a 10% yield, and mature on 1 January 2025, with interest receivable on 31 December of each year. Roosevelt Company uses the effective-interest method to allocate unamortized discount or premium. The reporting date of Roosevelt Company is 31 December.

Which of the following general journal entries would be recorded at the bond issuing day?

	A.	Dr Bond payable $310,500 Cr Cash $310,500
	B.	Dr Bond payable $227,460 Cr Cash $227,460
	C.	Dr Cash $227,460 Cr Bond payable $227,460
	D.	Dr Cash $537,960 Cr Bond payable $537,960