The Frozen Lake Company issues $503,000 of 10%, 10-year bonds at 107 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 ________.
A) debit to Cash for $25,150
B) debit to Interest Expense for $26,911
C) debit to Interest Expense for $23,389
D) credit to Premium on Bonds Payable for $1,761

C .Cash Interest Payment ($503,000 x 10% x 6/12 ) $25,150
Less: Amortization of Premium
[($35,210 / 10 x 6/12 )} 1,761
Total Interest Expense $23,389

Bond Carrying Amount (503,000 x 107%) $538,210
Bonds Payable 503,000
Premium $35,210