Whirlie Inc. issued $300,000 face value, 10% paid annually, 10-year bonds for $319,251 when the market of interest was 9%. The company uses the effective-interest method of amortization. At the end of the year, the company will record ________.
A. A credit to cash for $28,733
B. A debit to interest expense for $31,267
C. A debit to Discount on Bonds Payable for $1,267
D. A debit to Premium on Bonds Payable for $1.267