A company issued 9%, 15-year bonds with a par value of $650,000 that pay interest semiannually. The market rate on the date of issuance was 9%. The journal entry to record each semiannual interest payment is:

Multiple Choice

• Debit Bond Interest Expense $29,250; credit Cash $29,250.

• Debit Bond Interest Payable $43,333; credit Cash $43,333.

• Debit Bond Interest Expense $600,000; credit Cash $600,000.

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

• Debit Bond Interest Expense $58,500; credit Cash $58,500.