the company issued 9%, ten-year bonds dated January 1, 2010, with a face value of $100,000 at 102 plus accrued interest on March 1, 2010. Alfred amortizes premiums and discounts using the straight-line method. Expenses connected with the issue totaled $5,000 and were deducted in arriving at the net proceeds.

Assuming interest is paid semiannually on January 1 and July 1, the balance of the interest expense account (to the nearest dollar) after the July 1, 2010, entry would be