On January 1 of 2015, Parson Freight Company issues 7.5%, 10-year bonds with a par value of $3,100,000. The bonds pay interest semi-annually. The market rate of interest is 8.5% and the bond selling price was $2,889,352. The bond issuance should be recorded as:

Debit Cash $2,889,352; credit Bonds Payable $2,889,352.

Debit Cash $2,889,352; debit Interest Expense $210,648; credit Bonds Payable $3,100,000.

Debit Cash $3,100,000; credit Bonds Payable $3,100,000.

Debit Cash $2,889,352; debit Discount on Bonds Payable $210,648; credit Bonds Payable $3,100,000.

Debit Cash $3,100,000; credit Bonds Payable $2,889,352; credit Discount on Bonds Payable $210,648.