On August 1, 2008, Tyler Corporation Issues $3,000,000 of 10-

On August 1, 2008, Tyler Corporation issues $3,000,000 of 10- year bonds dated August 1, 2008, at 101 when the market rate of interest is 8%. Tyler Corporation uses the effective- interest method of amortization and interest is paid each January 31, and July 31. No accrual has been made. The entry to record the first semiannual interest payment on January 31, 2009, will include a:

A) debit to Interest Expense for $121,200.
B) credit to Interest Payable for $120,000.
C) debit to Premium on Bonds Payable for $300,000.
D) credit to Premium on Bonds Payable for $240,000.