On January 1, Parson Freight Company issues 9.0%, 10-year bonds with a par value of $4,400,000. The bonds pay interest semiannually. The market rate of interest is 10.0% and the bond selling price was $4,101,017. The bond issuance should be recorded as:

Multiple Choice

Debit Cash $4,101,017; debit Interest Expense $298,983; credit Bonds Payable $4,400,000.

Debit Cash $4,400,000; credit Bonds Payable $4,101,017; credit Discount on Bonds Payable $298,983.

Debit Cash $4,101,017; debit Discount on Bonds Payable $298,983; credit Bonds Payable $4,400,000.

Debit Cash $4,400,000; credit Bonds Payable $4,400,000.

Debit Cash $4,101,017; credit Bonds Payable $4,101,017.