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 on June 1,2017,at 96.5 includes a:

A) credit to Cash for $37,500
B) debit to Discount on Bonds Payable for $35,000
C) credit to Bonds Payable for $965,000
D) credit to Interest Payable for $75,000