On January 1, 2021, Kael Corporation issues $100,000 of 8-year bonds, paying 5% (contractual rate) interest semi-annually on June 30 and December 31. The market rate of interest on the date of sale is 3%. The entry to record the sale of the bonds on the date of issue is:

A. Cash ................................................................................................ 113,901

Bonds Payable ...................................................................... 113,901

B. Cash ................................................................................................ 100,000

Bonds Payable ...................................................................... 100,000

C. Cash ................................................................................................ 114,131

Bonds Payable ...................................................................... 114,131

D. Cash ................................................................................................ 102,690

Bonds Payable ...................................................................... 102,690

E. Cash ................................................................................................ 111,441

Bonds Payable ...................................................................... 111,441