On March 1, 2019, XYZ, Inc. sells $200,000, five-year, 10% bonds for $190,000. The journal entry to record the issuance of the bonds is:

A.

Dr. Cash 190,000, Discount on Bonds Payable 10,000 / Cr. Bonds Payable 200,000

B.

Dr. Cash 206,000 / Cr. Premium on Bonds Payable 6,000, Bonds Payable 200,000

C.

Dr. Cash 204,000, Premium on Bonds Payable 4,000 / Cr. Bonds Payable 208,000

D.

Dr. Cash 200,000 / Cr. Discount on Bonds Payable 10,000, Bonds Payable 190,000

E.

Dr. Cash 194,000, Discount on Bonds Payable 6,000 / Cr. Bonds Payable 200,000