Journal entry to record the issuance

Question

Problem:

SJ Corporation issues 800, 10-year, 8%, $1,000 bonds dated January 1, 2012, at 96. The journal entry to record the issuance will include:

• Debit to Cash of $800,000.
• Debit to Discount on Bonds Payable for $32,000.
• Credit to Bonds Payable for $768,000.
• Credit to Discount on Bonds for $32,000.
• Credit to Cash for $768,000.

Note: Explain all calculation and formulas.