One Thousand Bonds with a Face Value of $1,000 Each

One thousand bonds with a face value of $1,000 each, are sold at 104. The entry to record the issue is
a)
$\begin{array} { l l r r } & \text { Cash } & 1,040,000 & \\ & \text { Bonds Payable } & & 1,000,000 \\& \text { Interest Payable } & & 40,000 \\\end{array}$
b)
$\begin{array} { l l r r } & \text { Cash } & &961,538 \\ & \text { Bonds Payable } &&& 961,538 \\\end{array}$
c )
$\begin{array} { l l r r } & \text { Cash } & & 1,040,000 \\ & \text { Bonds Payable } & &&1,040,000 \\\end{array}$
d)
$\begin{array} { l l r r } & \text { Cash } &1,000,000& \\ & \text { Interest Expense } & 40,000 & \\& \text { Bonds Payable } & & 1,040,000\\\end{array}$

A) Choice A
B) Choice B
C) Choice C
D) Choice D