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On July 1, 2018, the Green Corporation issues $2,000,000 of 10-year, 8% bonds dated July 1, 2018 at 95. Green Corporation uses the straight-line method

On July 1, 2018, the Green Corporation issues $2,000,000 of 10-year, 8% bonds dated July 1, 2018 at 95. Green Corporation uses the straight-line method of amortization. Interest is paid each June 30 and December 31. The entry to record the first semiannual interest payment on December 31, 2018, will include a:

a. debit to Interest Expense for $80,000

b. credit to Discount on Bonds Payable for $5,000

c. credit to Discount on Bonds Payable for $10,000

d. debit to Premium on Bonds Payable for $5,000

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