On January 1, Sheffield Corporation issues $3100000, 5-year, 12% bonds at 95 with interest payable on January 1. The entry on December 31 to record accrued bond interest and the amortization of bond discount using the straight-line method will include a:. a. credit to Discount on Bonds Payable, $15500.
b. debit to Interest Expense, $372000.
c. debit to Interest Expense, $186000.
d. credit to Discount on Bonds Payable, $31000.