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Whit Inc. issued 5-year $100,000 bonds on January 1, 2018. The bonds pay interest annually....

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Accounting

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Whit Inc. issued 5-year $100,000 bonds on January 1, 2018. The bonds pay interest annually. Whit uses the effective interest rate method to amortize bond premiums and discounts. The bonds were issued with a 3% stated interest when the market interest rate was 4%. The journal entry to record the second interest payment on December 31, 2019 included a debit to interest expense for (expect some rounding): $3,112 $3,855 $3,822 $4,000 O $3,000

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