On January 1, 2013, Jacob Issues $600,000 of 11%, 15-Year $\begin{array}{|c|r|r|}\hline \text { Interest Expense } & 33,000 & \\\hline \text { Cash } & & 33,000 \\\hline\end{array}$

On January 1, 2013, Jacob issues $600,000 of 11%, 15-year bonds at a price of 102½. The straight-line method is used to amortize any bond discount or premium. What is the journal entry to record the first interest semi-annual interest payment on June 30, 2013?

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