Tea Mill issues ¥1,000,000 face value, 6%, 5-year bonds payable on December 31, 2018. Interest is paid semiannually each June 30 and December 31. The bonds sell at a price of 97; Tea Mill uses the straight-line method of amortizing bond discount or premium.The entry made by Tea Mill to record issuance of the bonds payable at December 31, 2018, includes:
A.
A debit to Cash of ¥1,000,000.
B.
A debit to Discount on Bonds Payable of ¥30,000.
C.
A credit to Bonds Payable of ¥970,000.
D.
A credit to Bond Interest Payable of ¥30,000.