Blanding Company Issues $1,174,000 of 12%,10-Year Debentures at 99 on 28

Multiple Choice

Blanding Company issues $1,174,000 of 12%,10-year debentures at 99 on 28 February 2017.The debentures pay interest on 28 February and 31 August.Assume that Blanding uses the straight-line method for amortisation.What is the journal entry to record the first interest payment on 31 August 2017? (Round to the nearest dollar. )

A) debit to Discount on debentures payable for $587
B) debit to Cash for $70,440
C) debit to Interest expense for $71,027
D) debit to Interest expense for $69,853