On January 1, 2016, Phoenix Corporation issued 10-year $200,000 bonds with a 6% stated rate of interest at 103. Phoenix Corporation pays the interest annually on December 31 and uses the straight-line amortization method. Which of the following is the correct general journal entry to record the interest expense for 2016?

A.

	Debit	Credit
Interest Expense	12,000
Premium on Bonds Payable		600
Cash		11,400

B.

	Debit	Credit
Interest Expense	12,000
Cash		12,000

C.	Debit	Credit
Interest Expense	12,600
Premium on Bonds Payable		600
Cash		12,000

D.

	Debit	Credit
Interest Expense	11,400
Premium on Bonds Payable	600
Cash		12,000