Knollwood Corporation Issued $278,000 of 30-Year,8 Percent Bonds at 106 $\begin{array}{l}\text { Bond Interest Expense } &11,120\\\text { Cash }&&11,120\end{array}$

Knollwood Corporation issued $278,000 of 30-year,8 percent bonds at 106 on one of its semi-annual interest dates.The straight-line method of amortization is to be used.The entry to record the bond interest expense on the next interest payment date is:

A)
$\begin{array}{l}\text { Bond Interest Expense } &11,120\\\text { Cash }&&11,120\end{array}$

B)
$\begin{array}{l}\text { Bond Interest Expense } &11,398\\\text { Cash }&&11,398\end{array}$
C)
$\begin{array}{l}\text { Bond Interest Expense }&10,520 \\\text { Cash }&&10,520\end{array}$
D)
$\begin{array}{lll}\text { Bond Interest Expense } & 10,842 & \\\text { Unamortized Bond Premium } & & 278 \\\quad \text { Cash }&&&11,120\end{array}$