On January 1 of 2015, Parson Freight Company issues 7.0%, 10-year bonds with a par value of $2,500,000. The bonds pay interest semi-annually. The market rate of interest is 8.0% and the bond selling price was $2,330,122. The bond issuance should be recorded as:

Debit Cash $2,330,122; debit Discount on Bonds Payable $169,878; credit Bonds Payable $2,500,000.

Debit Cash $2,500,000; credit Bonds Payable $2,500,000.

Debit Cash $2,500,000; credit Bonds Payable $2,330,122; credit Discount on Bonds Payable $169,878.

Debit Cash $2,330,122; credit Bonds Payable $2,330,122.

Debit Cash $2,330,122; debit Interest Expense $169,878; credit Bonds Payable $2,500,000.