B) False 6. On January 1, a company issued and sold a $400,000, 7%, 10-year bond payable, and received proceeds of $396,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The journal entry to record the first interest payment is: A) Debit Bond Interest Expense $14,000; credit Cash $14,000. B) Debit Bond Interest Expense $14,200: credit Cash $14,000; credit Discount on