On June 30, Teller Industries issues 8%, 20-year bonds payable with a face value of $210,000. The bonds are issued at 96 and pay interest on June 30 and December 31.

The entry to record the semiannual interest payment and amortization of the bond discount on December 31 would look like which of the following?

Date	Accounts and Explanations	Post Ref	DEBIT	CREDIT
1	Cash		$201,600
	Discount on Bonds Payable		$8,400
	Bonds Payable			$210,000
2	Interest Expense		$8,400
	Cash			$8,400
3	Interest Expense		$8,610
	Discount on Bonds Payable			$210
	Cash			$8,400
4	Cash		$8,400
	Discount on Bonds Payable			$420
	Bonds Payable			$7,980
5	None of the other entries

	A.	Item number 5 is correct
	B.	Item number 1 is correct
	C.	Item number 4 is correct
	D.	Item number 2 is correct
	E.	Item number 3 is correct