This Question: 2 pts 140f 41 (? complete) |>| This Test: 100 pts possible On January 1, 2019, Agree Company issued S76.000 of five-year, 8% bonds when the market interest rate was 12%. The issue price of the bonds was $67,401. Agree uses the effective - interest method of amortization for bond discount. Semiannual interest payments are made on June 30 and December 31 of each year. Which of the following is the correct journal entry to record the first interest payment? (Round all amounts to the nearest whole dollar.) O A. Interest Expense 3,040 1,520 Discount on Bonds Payable Cash 4,560 B. Interest Expense 4,044 Discount on Bonds Payable Cash 1,004 3,040 O C. Interest Expense 4,560 Discount on Bonds Payable Cash 3,040 1,520 O D. Interest Expense 4,560 Cash 4,560