On January 1, 2023, Kings Canyon Corporation issues $300,000, 5-year, 6% bonds at 90. Interest is paid semiannually on January 1 and July 1. Kings Canyon uses the straight-line method of amortization. The company's fiscal year ends on December 31. The necessary journal entry on January 1, 2024 is:

Group of answer choices

debit Interest Payable for $9,000 and credit Cash for $9,000.

debit Interest Payable for $12,000 and credit Cash for $9,000.

debit Interest Expense for $12,000; credit Discount on Bonds Payable for $3,000 and credit Cash for $9,000.

debit Interest Expense for $12,000; credit Discount on Bonds Payable for $3,000 and credit Interest Payable for $9,000.