Tarazi Company issued bonds with a coupon rate of 10% and a face amount of $200,000. The bonds mature in 15 years. The market interest rate for bonds with the same degree of riskiness is 8% compounded annually. These bonds were issued on January 1 of Year 1 at a price of$234,238. Coupon payments are madeannuallyon December 31, so the first coupon payment was made on December 31 of Year 1. Tarazi uses the effective-interest method on its books. The journal entry to record thesecondcoupon payment made on December 31 ofYear 2includes which of the following?

a debit to Interest Expense of $20,000a debit to Interest Expense of $18,739a debit to Premium on Bonds of $1,362a credit to Discount on Bonds of $1,261a debit to Premium on Bonds of $18,638a debit to Premium on Bonds of $1,261