On January 1 a company issued and sold a $400000 7% 10-year bond payable and re

On January 1 a company issued and sold a $400000 7% 10-year bond payable and received proceeds of $396000. Interest is payable each June 30 and December
31. The company uses the straight-line method to amortize the discount. The journal entry to record the first interest payment is: Debit Bond Interest Expense $14000; credit Cash $14000 Debit Bond Interest Expense $28000; credit Cash $28000. Debit Bond Interest Expense $14200; credit Cash $14000; credit Discount on Bonds Payable $200. Debit Bond Interest Expense $13800; debit Discount on Bonds Payable $200; credit Cash $14000. Debit Bond Interest Expense $14000; debit Discount on Bonds Payable $200; credit Cash $14200.