Question 7 Not ye answered Marked out of 2.00 On January 1, 2018, Oman Cables Industry (SAOG) issued 12% bonds dated January 1, 2018, with a principal amount of OR20 million. The bonds mature in 2027 (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 PM factors to calculate the interest and principal. Flag question The appropriate journal entry to record interest on December 31, 2018. using the effective interest method Select one a Interest expense Premium on bonds payable Cash 1 120 854 79.146 1 200,000 Ob Interest expense Premium on bonds payable Cash 1,102 009 97,991 1,200,000 1,200,000 O c Interest expense Discount on bonds payable Cash 79.146 1.120854 Od Interest expense Premium on bonds payable Cash 1,1242,623 75 377 1 200.000