On January 1, 20x8, Corporation issued $500,000, 10%, 5-year bonds, at 98. The bonds pay semiannual interest on January 1 and July 1. The company uses the straight-line method of amortization and has a calendar year end.

The journal entry on January 1, 20x8 would include which of the following?

Select one:

a. Credit to Discount on Bonds Payable for $10,000

b. Debit to cash for $490,000

c. Debit to cash for $500,000

d. Credit to Bonds Payable for $490,000