Table 15-3 Redding Corporation Issued $400,000 of 10%, Five-Year Bonds. the Bonds

Table 15-3
Redding Corporation issued $400,000 of 10%, five-year bonds. The bonds are dated and sold on February 1, 2017. Interest payment dates are February 1 and August 1. The market interest rate is 8% and the bonds are sold for $432,442. The company uses the effective-interest method of amortization.
-Refer to Table 15-4.Assuming the bonds were issued on May 1,2017,at 104.375 when the market interest rate was 6%,and the company uses the effective interest method of amortization,the semiannual interest payment on November 1,2017,would include a:

A) credit to Cash for $98,063
B) debit to Discount on Bonds Payable for $2,063
C) debit to Premium on Bonds Payable for $4,124
D) debit to Interest Expense for $93,938