On January 1,2015,Carmody Corporation Purchased 5% Bonds with a Face

On January 1,2015,Carmody Corporation purchased 5% bonds with a face value of $40,000 for $42,000.Carmody Corporation intends to hold the bonds until the maturity date.Interest is paid semiannually on January 1 and July 1.The journal entry on January 1,2015 is:

A) debit Held-to-Maturity Investment in Bonds for $40,000,debit Premium on Bonds for $2,000 and credit Cash for $42,000.
B) debit Held-to-Maturity Investment in Bonds for $42,000 and credit Cash for $42,000.
C) debit Investment in Bonds for $42,000 and credit Interest Revenue for $42,000.
D) debit Investment in Bonds for $40,000,debit Premium on Bonds for $2,000 and credit Interest Revenue $42,000.