Warner Company issued $5,000,000 of 10%, 3-year bonds. An effective annual rate is 6%. The effective-interest method of amortization is to be used. The journal entry on the first interest payment date, to record the payment of interest and amortization of discount will include a (Hint: PV of $1 (6%, 3yr) = 0.83962, PV of $1 Annuity (6%, 3 yr) = 2.67301, PV of $1 (10%, 3yr) = 0.75131, PV of $1 Annuity (10%, 3 yr) = 2.48685) a. debit to Bond Interest Expense for $500,000. b. credit to Cash for $332,076. c. debit to Premium on Bonds Payable for $167,924. d. debit to Bond Interest Expense for $167,924.