The Great Lakes Company issues $503,000 of 10%, 10-year bonds at 107 on March 31, 2018. The bond pays interest on March 31 and September 30. Assume that the company uses the straight-line method for amortization. The journal entry to record the first interest payment on September 30, 2018 includes a ________. (Round your intermediate answers to the nearest dollar.)
A) debit to Cash for $25,150
B) debit to Interest Expense for $26,911
C) debit to Interest Expense for $23,389
D) credit to Premium on Bonds Payable for $1761
C) debit to Interest Expense for $23,389
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A) 48.5% B) 7.8% C) 16.0% D) 4.3%
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