On January 1, 2020, Oman Cables Industry (SAOG) issued 12% bonds dated January 1, 2020, with a principal amount of OR30 million. The bonds mature in 2029 (10 years). For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semiannually on June 30 and December 31. Note: to determine the price of bonds you should use tables (2) present value of $1 and (4) present value of an ordinary annuity of $1 to find the appropriate P.V. factors to calculate the interest and principal. 4. The appropriate journal entry to record interest on December 31, 2020, using the effective interest method Interest expense Premium on bonds payable Cash 1,669,672 130,328 1,800,000 Interest expense Premium on bonds payable Cash 1,681,281 118,719 1,800,000 Interest expense Premium on bonds payable Cash 1,652,689 137,311 1,800,000 Interest expense 1,800,000