Mayberry, Inc., issued $101,800 of 10 year, 12% bonds dated April 1, 2013, for $107,160 on April 1, 2013. The bonds pay interest annually on April 1. Straight-line amortization is used by the company. What entry is required at April 1, 2014 for the first interest payment? (option !,2,3 or 4)

Interest expense	12,216
Premium on bonds payable	536
Cash		12,752

Interest expense	11,680
Premium on bonds payable	536
Cash		12,216

Interest expense	12,216
Cash		12,216

Interest expense	12,752
Premium on bonds payable		536
Cash		12,216