The Amazing Widget Company Issues $515,000 of 12%,10-Year Debentures at 105

Multiple Choice

The Amazing Widget Company issues $515,000 of 12%,10-year debentures at 105 on 30 April 2017.The debentures pay interest on 30 April and 31 October.Assume that the company uses the straight-line method for amortisation.What is the journal entry to record the first interest payment on 31 October 2017? (Round to the nearest dollar. )

A) credit to Premium on bonds payable for $1288.
B) debit to Interest expense for $32,188.
C) debit to Interest expense for $29,612.
D) debit to Cash for $30,900.