A company issued 7%, 15-year bonds with a par value of $540,000 that pay interest semiannually. The market rate on the date of Issuance was 7%. The journal entry to record each semiannual interest payment is 

Multiple Choice 

Debit Bond Interest Expense 518,900,  credit Cath $18,900 

Debit Bond Interest Expense $37,800  credit Cash $37,800

Debit Bond Interest Payable $36,000  credit Cash 536,000