Trego Company issued, payable on December 31, 2011, $1,000,000 face value, 4%, 5-year bonds. Interest will be paid semiannually each June 30 and December 31. The bonds sold at a price of 102; Trego uses the straight-line method of amortizing bond discount or premium. Trego's entry at June 30, 2012, to record the first semiannual payment of interest and amortization of discount/premium on the bonds includes a:

Question 20 options:

	Debit to Bond Interest Expense of $20,000.
	Credit to Cash of $22,000.
	Credit to Premium on Bonds Payable of $2,000.
	Debit to Bond Interest Expense of $22,000