Table 15-1 Nickle Industries Needs to Raise Capital for Expansion Purposes. Management

Table 15-1
Nickle Industries needs to raise capital for expansion purposes. Management is considering issuing $1,000,000 of 7.5%, 20-year bonds dated June 1, 2017 with interest payment dates of December 1 and June 1. Nickle's year end is December 31.
-Refer to Table 15-1.The entry to record the issuance of the bonds at maturity value plus accrued interest on August 1,2017,includes a:

A) debit to Cash for $1,000,000
B) credit to Interest Payable for $12,500
C) debit to Interest Expense for $37,500
D) credit to Bonds Payable for $1,012,500