On January 1, 2023, Ozark Minerals issued $20 million of 9%, ten-year convertible bonds at 101. The bonds pay interest on June 30 and December 31. Each $1,000 bond is convertible into forty shares of Ozark's no par ordinary shares. Bonds that are similar in all respects, except that they are nonconvertible, currently are selling at 99. Upon issuance, Ozark should ______.
A.
credit bonds payable $20,000,000 and discount on bonds payable $200,000
B.
credit bonds payable $20,000,000 and premium on bonds payable $200,000
C.
credit bonds payable $20,000,000 and equity $200,000
D.
credit bonds payable $20,200,000