Hicks Corporation issued $ 500,000 of 5 %, 10-year bonds payable at a price of 92 . The market interest rate at the date of issuance was 6 %, and the bonds pay interest semiannually. The journal entry to record the first semiannual interest payment using the effective-interest amortization method is

(D) = debit

(C)=credit

A: interest expense 14,500(D)

Discount on Bonds Payable 2,000(C)

Cash 12,500(C)

B:interest Expense 13,800(D)

Discount on Bonds Payable 1,300(C)

Cash 12,500(C)

C: interest expense 17,000(D)

Discount on bonds payable 2000(C)

cash 15,000(C)

D: interest Expense 16,300(D)

Discount on bonds payable 1,300(C)

cash 15,000(C)