A company issued 8%, 15-year bonds with a par value of $550,000. The current market rate is 8%. The journal entry to record each semiannual interest payment is:

Debit Bond Interest Expense $660,000; credit Cash $660,000.

Debit Bond Interest Expense $44,000; credit Cash $44,000.

No entry is needed, since no interest is paid until the bond is due.

Debit Bond Interest Expense $22,000; credit Cash $22,000.

Debit Bond Interest Expense $36,667; credit Cash $36,667.