On January 1,2010,Jacob Issues $600,000 of 11%,15-Year Bonds at a Price

On January 1,2010,Jacob issues $600,000 of 11%,15-year bonds at a price of 102½.Six years later,on January 1,2016,Jacob retires 30% of these bonds by buying them on the open market at 98½. All interest is accounted for and paid through December 31,2015,the day before the purchase.The straight-line method is used to amortize any bond discount. What is the journal entry to record the first interest payment on June 30,2010?

A)
$$\begin{array} { | c | r | r | } \hline \text { Interest Expense } & 33,000 & \\\hline \text { Cash } & & 33,000 \\\hline\end{array}$$
B)
$$\begin{array} { | c | r | r | } \hline \text { Cash } & 33,000 & \\\hline \text { Interest Expense } & & 33,000 \\\hline\end{array}$$
C)
$$\begin{array} { | l | r | r | } \hline \text { Interest Expense } & 32,500 & \\\hline \text { Discount on Bonds Payable } & 500 & \\\hline \text { Cash } & & 33,000 \\\hline\end{array}$$
D)
$$\begin{array} { | l | r | r | } \hline \text { Interest Expense } & 32,500 & \\\hline \text { Premium on Bonds Payable } & 500 & \\\hline \text { Cash } & & 33,000 \\\hline\end{array}$$
E)
$$\begin{array} { | l | r | r | } \hline \text { Interest Expense } & 33,000 & \\\hline \text { Discount on Bonds Payable } & & 500 \\\hline \text { Cash } & & 32,500 \\\hline\end{array}$$