Chapter 10 Qulz MC Qu. 117 On January 1, a company 1 On January 1, a company issued and sold a $400,000 8%, 10year bond payable, and received proceeds of $395,000. 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: polnts Debit Bond Interest Expense S%2so, credit Cash $15,000, credt Discount on Bonds Payable $250 Debilt Bond interest Expense $16,000; debit Discount on Bonds Payable $250 credit Cash $16.250 Debit Bond Interest Expense $16,000; credit Cash $16.000 Debit Bond Interest Expense $32,000 credit Cash $32.000 Prey 1 of 20 Nxt>