On January 1, 2017, Dodge Company Purchases $90,000, 7% Bonds

On January 1, 2017, Dodge Company purchases $90,000, 7% bonds at a price of 86.4 and a maturity date of January 1, 2027. Dodge Company intends to hold the bonds until their maturity date. Interest is paid semiannually, on January 1 and July 1. Dodge Company has a calendar year end. The entry to record the purchase of the bond investment on January 1, 2017, is:

A) debit Held-to-Maturity Investment in Bonds for $90,000 and credit Cash for $90,000.
B) debit Held-to-Maturity Investment in Bonds for $77,760 and credit Cash for $77,760.
C) debit Cash for $90,000 and credit Bonds Payable for $90,000.
D) debit Cash for $77,760 and credit Investment in Bonds for $77,760.