On January 1, 2016, Tonika Company issued a four-year, $10, 700, 7% bond. The interest is payable annually each December 31. The issue price was $10, 018 based on an 8% effective interest rate. Tonika uses the effective-interest amortization method. Rounding calculations to the nearest whole dollar, which of the following journal entries correctly records the 2016 interest expense