on January 1, 2021, Salmon corporation Issue $700,000, 5-year, 8% bonds at 105. interest is paid semiannually on January 1 and July 1. Salmon corporation uses a straight line method. The companies fiscal year ends on December 31.

The necessary entry on July 1, 2021 is...

A) Credit to cash of $28,000

B) Credit to premium on bonds for $3,500

C) Debit to discount bonds payable of $3,500

D) debited interest expense of $28,000