Exhibit 14-10 Hawk Issued $500,000 of Its Ten-Year 5% Bonds for $463,197

Exhibit 14-10
Hawk issued $500,000 of its ten-year 5% bonds for $463,197 on October 1, 2016 so as to yield an effective rate of 6%. Interest is paid each October 1 and April 1
-Refer to Exhibit 14-9. Assuming Hawk uses the effective interest method and reversing entries, the entry to record the payment of interest on April 1, 2017,would include

A) a debit to Interest Expense for $4,498.
B) a credit to Premium on Bonds Payable for $502.
C) a credit to Bonds Payable for $10,000.
D) a credit to Cash for $8,000.