Bower Company sold \(\$ 100,000\) of 20 -year bonds for \(\$ 95,000\). The stated rate on the bonds was \(7 \%\), and interest is paid annually on December 31. What entry would be made on December 31 when the interest is paid? (Numbers are omitted.)

a. Interest Expense Cash

\author{

b. Interest Expense \\ Bonds Payable \\ Cash \\

c. Interest Expense \\ Discount on Bonds Payable \\ Cash \\

d. Interest Expense \\ Discount on Bonds Payable \\ Cash }