Edgar Ltd Issues $7 Million in 6-Year,10%,semi-Annual Coupon Debentures B)

Edgar Ltd issues $7 million in 6-year,10%,semi-annual coupon debentures.The rate of return required by the market is 8% per annum.What is the journal entry to record the first payment of interest assuming using the effective-interest method to amortise any discount or premium (rounded to the nearest dollar) ?

A)
$$\begin{array} { | l | l | r | r | } \hline \mathrm { Dr } & \text { Interest expense } & 287306 & \\\hline \mathrm { Dr } & \text { Debenture } & 62694 & \\\hline \mathrm { Cr } & \text { Cash } & & 350000 \\\hline\end{array}$$
B)
$$\begin{array} { | r | l | r | r | } \hline \mathrm { Dr } & \text { Interest expense } & 412694 & \\\hline \mathrm { Cr } & \text { Debenture } & & 62694 \\\hline \mathrm { Cr } & \text { Cash } & & 350000 \\\hline\end{array}$$
C)
$$\begin{array} { | r | l | r | r | } \hline \mathrm { Dr } & \text { Interest expense } & 350000 & \\\hline \mathrm { Cr } & \text { Debenture } & & 43722 \\\hline \mathrm { Cr } & \text { Cash } & & 306278 \\\hline\end{array}$$
D)
$$\begin{array} { | l | l | r | r | } \hline \mathrm { Dr } & \text { Interest expense } & 306278 & \\\hline \mathrm { Dr } & \text { Debenture } & 43722 & \\\hline \mathrm { Cr } & \text { Cash } & & 350000 \\\hline\end{array}$$