The Frozen Lake Company Issues $530,000 of 9%,10-Year Bonds at 105

The Frozen Lake Company issues $530,000 of 9%,10-year bonds at 105 on March 31,2017.The bond pays interest on March 31 and September 30.Assume that the company uses the straight-line method for amortization.The journal entry to record the first interest payment on September 30,2017 includes a ________.(Round your intermediate answers to the nearest dollar. )

A) debit to Cash for $23,850
B) debit to Interest Expense for $25,175
C) debit to Interest Expense for $22,525
D) credit to Premium on Bonds Payable for $1,325