A bond is issued with a face value of $1,000,000 with an 8-year term. The annual market rate is 5%, with coupon rate of 4%, and payments made annually. The journal entry to record the issuance of this bond includes a debit to ____________ in the amount of ___________. (Fill in the blanks)
Group of answer choices
Discount on Bonds; $65,275
Cash; $1,000,000
Bond Payable; $934,725
Interest Expense; $65,275