21.) Lorien Company issued bonds with a coupon rate of 0% and a face amount of 100,000. These are zero-coupon bonds. The bonds mature in 20 years. The market interst rate for bonds with the same degree of riskiness is 7% compounded annually. These bonds were issued January 1 Year 1. Lorien used the effective-interest method on its books. (round to the nearest dollar). In the journal entry made in connection with these bonds on Dec 31 of Year 1 there is a

A. Debit to interest expense 7,000

B. Debit to Discount of Bonds 1,809

C. Credit to Discount of Bonds 1,809

D. Credit to Interest Payable 3,708

E. Debit to Interest Expense 5,191

F. Credit to Discount on Bonds 2,584

G. Credit to Interest Payable 1,809

H. Nothing- no journal entry needed