On January 1, Health Corporation Issues $3,000,000, 10-Year, 8% Bonds

Multiple Choice

On January 1, Health Corporation issues $3,000,000, 10-year, 8% 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, $120,000.
B) debit to Interest Expense, $240,000.
C) credit to Discount on Bonds Payable, $12,000.
D) credit to Discount on Bonds Payable, $24,000.