On July 1, 2013, the Jazz Corporation issues $4,000,000 of 10-year bonds dated July 1, 2013, at 89 ...

On July 1, 2013, the Jazz Corporation issues $4,000,000 of 10-year bonds dated July 1, 2013, at 89 when the market rate of interest was 8%. Jazz Corporation uses the effective-interest method of amortization. Interest is paid each June 30 and December 31. The entry to record the first semi-annual interest payment on December 31, 2013, will include a:
A) debit to Interest Expense for $142,400
B) credit to Discount on Bonds Payable for $284,800
C) debit to Premium on Bonds Payable for $160,000
D) credit to Interest Payable for $320,000