Arrowplan Inc

Arrowplan Inc. prepares its financial statements in accordance with ASPE. It issued $800,000 of 7.5%, 15-year bonds dated March 1, 2014, on May 1, 2014, at 97 1/2 plus accrued interest. If Arrowplan Inc. uses the straight-line method of amortization, the entry to retire the bonds on the maturity date would include a:

A) debit to Bonds Payable for $780,000
B) credit to Cash for $800,000
C) credit to Discount on Bonds Payable for $20,000
D) debit to Premium on Bonds Payable for $20,000