On January 1st, XYZ Company issued $200,000, 5-year, 4% bonds. The market rate at the time of the sale was greater than 4% so the bonds were sold at 93. Interest is payable June 30th and December 31st. The entry to record the sale of the bonds would include a:
A.
Debit to Cash for $200,000.
B.
Credit to Cash for $186,000.
C.
Debit to Discount on Bonds Payable for $14,000.
D.
Credit to Bonds Payable for $186,000.