Use the Following Information to Answer Questions

Use the following information to answer questions
Voters in Phillips City approved the construction of a new city hall building and approved a $5 million bond issue with a stated rate of interest of 6% to fund the construction.When the bonds were issued, they sold for 101.What are appropriate entries related to the premium?
-In the debt service fund

A) Debit Cash $50,000; Credit Revenues $50,000; no other entries required.
B) Debit Cash $50,000; Credit Other financing sources-transfer $50,000; No other entries required.
C) Debit Other financing sources-transfer $50,000; credit Cash $50,000.
D) No entry in the Debt Service Fund.