On January 1, 2019, Castle Services issued $181,000 of sixyear, 12% bonds when the market interest rate was 11%. The bonds were issued for $187,000. Castle uses the effectiveinterest method to amortize the bond premium. Semiannual interest payments are made on June 30 and December 31 of each year. Which of the following is the correct journal entry to record the first interest payment? (Round your answers to the nearest dollar number.)

A. Interest Expense 9,955 Cash 9,955

B. Cash 10,860 Premium on Bonds Payable 905 Interest Expense 9,955

C. Interest Expense 10,285 Premium on Bonds Payable 575 Cash 10,860

D. Interest Expense 9,955 Discount on Bonds Payable 905 Cash 10,860