Keys Inc. issued 100 bonds with a face value of $1,000 and a rate of 8% at $1,025 each. The journal entry to record this transaction includes ________.
A. a credit to Bonds Payable for $102,500
B. a credit to cash for $102,500
C. a debit to cash for $100,000
D. a credit to Premium on Bonds Payable for $2,500
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