Baxter Company issued $638,000,8%,3 - year bonds for 97 , with interest paid annually. Assuming straight - line amortization, what is the journal entry for the first interest payment? (Round intermediary and final answers to two decimal places.) A. debit Interest Expense for $57,420; credit Discount on Bonds Payable for $6,380 and credit Cash for $51,040 B. debit Cash for $57,420; credit Discount on Bonds Payable for $6,380 and credit Interest Expense for $51,040 C. debit Cash for $44,660 and debit Premium on Bonds Payable for $6,380; 9 dit Interest Expense for $51,040 D. debit Interest Expense for $44,660 and debit Premium on Bonds Payable for $6,380; credit Cash for $51,040