Mayberry,Inc $\begin{array} { l r r } \text { Interest expense } & 11,764 & \\\text { Premium on bonds payable } & 236 & \\\text { Cash } & & 12,000\end{array}$

Multiple Choice

Mayberry,Inc.,issued $100,000 of 10 year,12% bonds dated April 1,2009,for $102,360 on April 1,2009.The bonds pay interest annually on April 1.Straight-line amortization is used by the company.What entry is needed at April 1,2010 for the first interest payment?

A) $\begin{array} { l r r } \text { Interest expense } & 11,764 & \\\text { Premium on bonds payable } & 236 & \\\text { Cash } & & 12,000\end{array}$
B) $\begin{array} { l r } \text { Interest expense } & 12,236 \\\quad \text { Premium on bonds payable } && 236 \\\text { Cash } & &12,000\end{array}$
C) $\begin{array} { l r r } \text { Interest expense } & 12,000 & \\\text { Premium on bonds payable } & 236 & \\\quad \text { Cash } & & 12,236\end{array}$
D)

$\begin{array} { l r r } \text { Interest expense } & 12,000 & \\\quad \text { Cash } & & 12,000\end{array}$