Lassen Corporation Issued Ten-Year Term Bonds on January 1,2010,with a Face

Lassen Corporation issued ten-year term bonds on January 1,2010,with a face value of $800,000.The face interest rate is 6 percent and interest is payable semi-annually on June 30 and December 31.The bonds were issued for $690,960 to yield an effective annual rate of 8 percent.The effective interest method of amortization is to be used.The entry to record the bond interest expense on the first interest payment date is: (Round answer to the nearest dollar.)

A)
$\begin{array}{llr} \text { Bond Interest Expense } &24,000\\ \text { Cash } &&24,000\\\end{array}$

B)
$\begin{array}{l}\text { Bond Interest Expense }&27,638 \\\text { Unamortized Bond Discount }&&3,638 \\\text { Cash }&&24,000\end{array}$

C)
$\begin{array}{l}\text { Bond Interest Expense }&27,638 \\\text { Cash }&&27,638\end{array}$
D)
$\begin{array} { l l } \text { Bond Interest Expense } & 27,638\\\text { Unamortized Bond Discount}&&27,638 \end{array}$