Weeds Inc issued a $ 100,000, 10%, 12 year bond at 106. What is the correct entry to record the interest expense on July 1 if the bond was issued on January 1st?

	Interest expense 5,250         Premium on bonds payable 250        Cash 5,000
	Interest expense 4,750 Premium on bonds payable 250                      Cash 5,000
	Interest expense 5,000 Discount on bonds payable 250                          Cash 5,250
	Interest expense 5,000                       Cash 5,000

Answer rating: 100% (QA)

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