On January 1, 2013, Jacob Issues $800,000 of 9%, 13-Year $\begin{array}{|l|r|r|}\hline \text { Cash } & 800,000 & \\\hline \text { Bonds Payable } & & 800,000 \\\hline\end{array}$

On January 1, 2013, Jacob issues $800,000 of 9%, 13-year bonds at a price of 96½. Six years later, on January 1, 2019, Jacob retires 20% of these bonds by buying them on the open market at 105½. All interest is accounted for and paid through December 31, 2018, the day before the purchase. The straight-line method is used to amortize any bond discount or premium. What is the journal entry to record the issuance of the bonds on January 1, 2013?

A) $\begin{array}{|l|r|r|}\hline \text { Cash } & 800,000 & \\\hline \text { Bonds Payable } & & 800,000 \\\hline\end{array}$
B) $\begin{array}{|c|r|r|}\hline \text { Bonds Payable } & 800,000 & \\\hline \text { Cash } & & 800,000 \\\hline\end{array}$
C) $\begin{array}{|l|r|r|}\hline \text { Cash } & 800,000 & \\\hline \text { Bonds Payable } & & 772,000 \\\hline \text { Discount on Bonds Payable } & & 28,000 \\\hline\end{array}$
D) $\begin{array}{|l|r|r|}\hline \text { Cash } & 772,000 & \\\hline \text { Premium on Bonds Payable } & 28,000 & \\\hline \text { Bonds Payable } & & 800,000 \\\hline\end{array}$
E) $\begin{array}{|l|r|r|}\hline \text { Cash } & 772,000 & \\\hline \text { Discount on Bonds Payable } & 28,000 & \\\hline \text { Bonds Payable } & & 800,000 \\\hline\end{array}$