A Company Issues $50 Million of Bonds at Par on 1

A company issues $50 million of bonds at par on 1 January 2014. 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) $$\begin{array} { | l | r | r | } \hline \text { Cash } & \mathbf { 5 0 , 0 0 0 , 0 0 0 } & \\\hline \text { Interest Expense } & 2,500,000 & \\\hline \text { Bonds Payable } & & \mathbf { 5 0 , 0 0 0 , 0 0 0 } \\\hline \text { Interest Payable } & & 2,500,000 \\\hline\end{array}$$ C) $$\begin{array} { | l | c | c | } \hline \text { Cash } & 50,000,000 & \\\hline \text { Interest Expense } & 5,000,000 & \\\hline \text { Bonds Payable } & & 50,000,000 \\\hline \text { Interest Payable } & & 5,000,000 \\\hline\end{array}$$ D) $$\begin{array} { | l | r | r | } \hline \text { Cash } & 50,000,000 & \\\hline \text { Interest Expense } & 500,000 & \\\hline \text { Bonds payable } & & 50,000,000 \\\hline \text { Interest payable } & & 500,000 \\\hline\end{array}$$

A) Option A
B) Option B
C) Option C
D) Option D