Salt Lake Glassware Company Issues $1,121,000 of Its 12%,10-Year Bonds

Salt Lake Glassware Company issues $1,121,000 of its 12%,10-year bonds at 99 on February 28,2017.The bonds pay interest on February 28 and August 31.Assume that Salt Lake uses the straight-line method for amortization.The journal entry to record the first interest payment on August 31,2017 includes a ________.

A) debit to Cash for $67,260
B) debit to Interest Expense for $67,821
C) debit to Interest Expense for $66,699
D) debit to Discount on Bonds Payable for $561