A company issues $400,000 of 8% bonds, which mature in 10 years, at par on January 1, 2015. The bonds pay interest semiannually on each June 30 and December 31. What entry should be made on December 31, 2015 when the interest is paid?

A. Debit Bond Interest Expense $16,000; Credit Bond Interest Payable $16,000. B. None of the above. C. Debit Bond Interest Expense $32,000; Credit Cash $32,000. D. Debit Bond Interest Expense $32,000; Credit Bond Interest Payable $32,000. E. Debit Bond Interest Expense $16,000; Credit Cash $16,000.