Gardner Corporation Issues $2,000,000, 10-Year, 8% Bonds Payable at a Price

Gardner Corporation issues $2,000,000, 10-year, 8% bonds payable at a price of 98. The journal entry to record the issuance will include a:

A) debit to cash of $2,000,000
B) credit to discount on bonds payable for $40,000.
C) credit to bonds payable for $1,960,000.
D) debit to cash for $1,960,000.