Ten-year bonds with a stated rate of 10% and face value of $500,000 were issued on January 1, 2011, for 104 and pay interest semiannually on June 30 and December 31 of each year. The entry on June 30, 2011, to pay interest and record amortization of bond discount or premium includes:
a. a debit to Bond Interest Expense for $25,000.
b. a debit to Bond Interest Expense for $24,000.
c. a debit to Bond Interest Expense for $26,000.
d. a credit to Premium on Bonds Payable for $1,000.
e. a debit to Discount on Bonds Payable for $1,000.
b
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