Evermaster Corporation issued $$100,000$ of $8\%$ term bonds on January $1,2014,$ due on January $1,2019,$ with interest payable each July $1$ and January $1.$ Investors require an effective$-$interest rate of $12\%.$ Record the journal entry of issuance at January $1,2014$ and the joumal entry of first interest payment at July $1,2014.$

PV of $)=10,i=(6\%$ factor $=0\mathrm{.}55839$

PV of ordinary annuity $(n=10,i=6\%)$ factor $=7\mathrm{.}36009$

Which of the following statement is correct?

A$.$ To record the journal entry of interest expense on $7/1/2014$ Interest expense $5,117$

Discount on bond payable

$1117$

Cash

$4,000$

B$.$ To record the journal entry of interest expense on $7/1/2014$

Interest expense $10\mathrm{.}234$

Discount on bond payable Cash

$6\mathrm{.}234$

$4000$

c$.$ To record the journal entry of interest expense on $7/1/2014$

Interest expense

$2,883$

Discount on bond payable

$1,117.$

Cash

D$.$ To record the joumal entry of interest expense on $\frac{7}{1}\frac{?}{2014}$ Interest expense $5,117$

Premium on bond payable

$1,117$

Cash

$4,000$