On January 1, 2019, Food Design Company Issues $960,000, 15

On January 1, 2019, Food Design Company issues $960,000, 15 year, 8% bonds (paying semiannual interest) for $1,148,164, when the annual market rate of interest is 6%.
If the company uses the effective interest method of amortization, the journal entry to record the semi-annual interest on June 30 will include a:

A) Debit to premium on bonds payable for $3,955
B) Debit to interest expense for $38,400
C) Credit to cash for $76,800
D) Debit to interest expense for $68,890