On January 1,2013,Jacob Issues $600,000 of 11%,15-Year Bonds at a Price

On January 1,2013,Jacob issues $600,000 of 11%,15-year bonds at a price of 102½.The straight-line method is used to amortize any bond discount or premium.What is the journal entry to record the first interest semi-annual interest payment on June 30,2013?

A) $$\begin{array} { | c | r | r | } \hline \text { Interest Expense } & 33,000 & \\\hline \text { Cash } & & 33,000 \\\hline\end{array}$$
B) $$\begin{array} { | l | r | r | } \hline \text { Cash } & 33,000 & \\\hline \text { Interest Expense } & & 33,000 \\\hline\end{array}$$
C) $$\begin{array} { | l | r | r | } \hline \text { Interest Expense } & 32,500 & \\\hline \text { Discount on Bonds Payable } & 500 & \\\hline \text { Cash } & & 33,000 \\\hline\end{array}$$
D) $$\begin{array} { | l | r | r | } \hline \text { Interest Expense } & 32,500 & \\\hline \text { Premium on Bonds Payable } & 500 & \\\hline \text { Cash } & & 33,000 \\\hline\end{array}$$
E) $$\begin{array} { | l | r | r | } \hline \text { Interest Expense } & 33,000 & \\\hline \text { Discount on Bonds Payable } & & 500 \\\hline \text { Cash } & & 32,500 \\\hline\end{array}$$