How would you balance the journal entry for issuing zero coupon bonds with a face value of \$200,000 at a 20% discount?

• A. Debit Cash \$160,000, Credit Bonds Payable \$160,000
• B. Debit Cash \$200,000, Credit Bonds Payable \$160,000, Credit Discount on Bonds Payable \$40,000
• C. Debit Cash \$160,000, Credit Bonds Payable \$200,000, Debit Discount on Bonds Payable \$40,000
• D. Debit Cash \$200,000, Credit Bonds Payable \$200,000