Assuming that interest and discount/premium amortization are recorded each August 31, prepare the adjusting entry to be made on December 31, 2026. Round to the nearest dollar.

a) Debit Interest Expense, Credit Discount on Bonds Payable
b) Debit Interest Expense, Credit Premium on Bonds Payable
c) Debit Discount on Bonds Payable, Credit Interest Expense
d) Debit Premium on Bonds Payable, Credit Interest Expense