Baxter Company issued $726,000,8%,8-year bonds for 96 , with interest paid annually. Assuming straight - line amortization, what is the joumal entry for the first interest payment? (Round intermediary and final answers to two decimal places.) A. debit Cash for $61,710; credit Discount on Bonds Payable for $3,630 and credit Interest Expense for $58,080 B. debit Interest Expense for $61,710; credit Discount on Bonds Payable for $3,630 and credit Cash for $58,080 C. debit Cash for $54,450 and debit Premium on Bonds Payable for $3,630; credit Interest Expense for $58,080 D. debit Interest Expense for $54,450 and debit Premium on Bonds Payable for $3,630; credit Cash for $58,080