On January 1, Amazon Company issues 7%, 10-year bonds with a par value of $2,000,000. The bonds pay interest annually. The market rate of interest is 8% and the bond selling price was $1,865,798. The bond issuance should be recorded as:

Some other entry

Cash 1,864,097

Bonds Payable 1,864,097

Cash 1,864,097

Discount on Bonds Payable 135,903

Bonds Payable 2,000,000

Cash 2,000,000

Bonds Payable 1,864,097

Discount on Bonds Payable 135,903

Cash 1,864,097

Interest Expense 135,903

Bonds Payable 2,000,000.