On January 1, Sewell Corporation Issues $3,000,000, 5-Year, 12% Bonds

Multiple Choice

On January 1, Sewell Corporation issues $3,000,000, 5-year, 12% bonds at 96 with interest payable on January 1.The entry on December 31 to record accrued bond interest and the amortization of bond discount using the straight-line method will include a

A) debit to Interest Expense, $180,000.
B) debit to Interest Expense, $360,000.
C) credit to Discount on Bonds Payable, $24,000.
D) credit to Discount on Bonds Payable, $12,000.