Your company issues $550,000 in bonds at an issue price of 98. The company will record:

a debit of $490,000 to cash, a debit of $10,000 to a contra liability account to reflect the discount, and a credit of $500,000 to bonds payable.

a debit of $550,000 to bonds payable, a credit of $11,000 to a contra liability account to reflect the discount, and a credit to cash of $539,000.

O a debit of $490,000 to bonds payable, a debit of $10,000 to a contra asset account to reflect the discount, and a credit to cash of $500,000.

a debit of $539,000 to cash, a debit of $11,000 to a contra liability account to reflect the discount, and a credit of $550,000 to bonds payable.