A Company Issues $50 Million of Bonds at Par on January

A company issues $50 million of bonds at par on January 1, 2009. The bonds pay 10% interest semi-annually on 12/31 and 6/30 and mature in 20 years. The journal entry when the bonds are sold is:

A) $\begin{array}{|c|c|c|}\hline \text { Cash } & 50,000,000 & \\\hline \text { Bonds Payable } && 50,000,000 \\\hline\end{array}$
B) $$\begin{array} { | l | r | r | } \hline \text { Cash } & 50,000,000 & \\\hline \text { Interest Expense } & 2,500,000 & \\\hline \text { Bonds Payable } & & 50,000,000 \\\hline \text { Interest Payable } & & 2,500,000 \\\hline\end{array}$$
C) $$\begin{array} { | l | r | r | } \hline \text { Cash } & 50,000,000 & \\\hline \text { Interest Expense } & 5,000,000 & \\\hline \text { Bonds Payable } & & 50,000,000 \\\hline \text { Interest Payable } & & 5,000,000 \\\hline\end{array}$$
D) $$\begin{array} { | c | r | r | } \hline \text { Cash } & 50,000,000 & \\\hline \text { Interest Expense } & 500,000 & \\\hline \text { Bonds Payable } & & 50,000,000 \\\hline \text { Interest Payable } & & 500,000 \\\hline\end{array}$$