On January 1, Parson Freight Company issues 8.5%, 10-year bonds with a par value of $3,800,000. The bonds pay interest semiannually. The market rate of interest is 9.5% and the bond selling price was $3,541,787. The bond issuance should be recorded as: Multiple Choice O Debit Cash $3.800,000: credit Bonds Payable $3.800.000. O Debit Cash $3,541,787: credit Bonds Payable $3.541787. Debit Cash $3,800,000 credit Bonds Payable $3,541,787; credit Discount on Bonds Payable $258,213. o Debit Cash $3,541,787, debit Discount on Bonds Payable $258.213: credit Bonds Payable $3,800,000. o o O Debit Cash $3.541,787: debit Interest Expense $258,213; credit Bonds Payable $3,800,000.
