Solderman Company issued $520,000, 8%, 10-year bonds for $422,800 with a market rate of 10%. The effective interest method of amortization is used and interest is paid annually. The journal entry on the first interest payment date would include a: OA. credit to Interest Expense of $42,280. OB. credit to Cash of $42,280. OC. credit to Interest Expense of $41,600. O D. credit to Cash of $41,600. TEX

Solderman Company issued $520,000,8%,10 - yes bends for $422.800 with o maket rase of 10%. The efective interest method of amontration is used and interest is paid annualy, The joumal entry on the fint interest payment date would include a A. crodit to interest Expense of 542,280 . B. credit to Cash of $42.280. C. credt to interest Expense of $41,600. D. credt to Cash of \$1, 600