A bond pays \$1,800 in cash interest and amortizes \$300 of premium. What is the journal entry for interest expense and premium amortization?

• A. Debit Interest Expense \$1,800, Debit Premium on Bonds Payable \$300, Credit Cash \$2,100
• B. Debit Interest Expense \$1,800, Credit Premium on Bonds Payable \$300, Credit Cash \$2,100
• C. Debit Interest Expense \$1,500, Debit Premium on Bonds Payable \$300, Credit Cash \$1,800
• D. Debit Interest Expense \$2,100, Credit Premium on Bonds Payable \$300, Credit Cash \$1,800

Answer: (C)