A company issued $1,000,000 of 30-year, 8% callable bonds on April 1, with interest payable on April 1 and October 1. The fiscal year of the company is the calendar year. What is the journal entry needed when the bonds are issued at face value?
A. Debit Bonds Payable, credit Cash
B. Debit Cash, credit Bonds Payable
C. Debit Cash, credit Premium on Bonds Payable and Bonds Payable
D. Debit Cash and Discount on Bonds Payable, credit Bonds Payable