Accurate Numbers, Inc., issued $100,000 of 10 year, 12% bonds dated April 1, 20X1, for $102,360 on April 1, 20X1. The bonds pay interest on April 1 and October 1. Straight-line amortization is used by the company. What entry is needed at October 1 for the first interest payment?

A

Interest expense 5,882

Premium on bonds payable 118

Cash 6,000

B

Interest expense 6,118

Discount on bonds payable 118

Cash 6,000

C

Interest expense 6,000

Premium on bonds payable 118

Cash 6,118

D

Interest expense 6,000

Cash 6,000