Blanding Company issues $1,000,000 of 8%, 10-year bonds at 98 on February 28, 2014. The bond pays interest on February 28 and August 31. The market rate of interest on the issuance date was 10%. Assume Blanding uses the straight-line method for amortization. The journal entry to record the first interest payment on August 31, 2014 would be a: debit to Cash for S40,000. debit to Interest expense Tor $41,000. debit to Interest expense for $39,000. debit to Discount on bonds payable for $1,000