4 A company issued 5-year, 7% bonds with a par value of $800,000. The market rate when the bonds were issued was 6.5%. The company received $808,000 cash for the bonds. Using the straight-line method, the amount of recorded interest expense for the first semiannual interest period is: 3 sa2 Multiple Choice 528000. 556.000. $28. 527200. Sss 200. A company issued 8%, 15-year bonds with a par value of $470,000 that pay interest semiannually. The market rate on the date of issuance was 8%. The journal entry to record each semiannual interest payment is: Multiple Choice o O Debit Bond Interest Expense $8,800, credit Cash $18,800 o Debit Bond Interest Payable $31,333; Credit Cash $31333 o Debt Bond interest Expense $420,000 credit Cash $420,000 o o No entry is needed, since no interest is paid until the bond is due Help Prior period adjustments are reported in the Multiple Choice (2 ) Balance sheet. Statement of cash flows. Statement of retained earings Single-step income statement Multiple-step income statement