The Following Information Applies to Both Questions

The following information applies to both questions
On October 1, 2010 Bartley Corporation issued 5%, 10-year bonds with a face value of $500,000 at 108 (a 4% yield) .Interest is paid on October 1 and April 1, with any premiums or discounts amortized on an effective-interest basis.
-The entry to record the issuance of the bonds would include a

A) credit of $12,500 to interest Payable.
B) credit of $540,000 to Bonds Payable.
C) credit of $500,000 to Bonds Payable.
D) debit of $40,000 to Bonds Payable.