RJC Company Issued $8,000 of 10% Bonds on January 1

Multiple Choice

RJC Company issued $8,000 of 10% bonds on January 1, 2009. The bonds were issued at a premium. The cash payment for annual interest on the bonds

A) is equal to annual interest expense.
B) is greater than annual interest expense.
C) is less than annual interest expense.
D) equals the balance in Premium on Bonds Payable on the day the bonds were issued.