On August 1, 2011. Tyler Corporation issues $3,000,000 of 10-year bonds dated August 1, 2011, at 101 when the market rate of interest is 8% Tyler Corporation uses the effective-interest method of amortization and interest is paid each January 31, and July 31. The entry to record the first semiannual interest payment on January 31, 2012, will include a: a. debit to Premium on Bonds Payable for $300,000, b. credit to Premium on Bonds Payable for $240,000 Oc debit to interest Expense for $20,000 d. debit to Interest Expense for $121,200. The correct answer is: debit to interest Expense for $121,200