On January 1, 2021, Entity B issued $1,000,000, 4% bonds payable at 98 in order to finance a new international venture. The bonds mature in 5 years and pay interest annually on December 31. The journal entry to record issuance of the bonds includes:

		a credit to bonds payable of $1,000,000
		a debit to premium on bonds payable of $20,000
		a debit to bond interest expense of $40,000.
		a debit to cash of $1,000,000