Help Save & Exit On January 1, a company issued and sold a $407,000, 8%, 10-year bond payable, and received proceeds of $402000 Interest is payable each June 30 and December 31. The company uses the straight -ine method to amortize the discount. The journal entry to record the frst interest payment s: Multiple Choice Debit Bond Interest Expense $16,280 credit Cash $16,280. Debit Bond Interest Expense $16,030; debit Discount on Bonds Payable $250, credit Cash $16.280 Debit Bond Interest Expense $16,530, credit Cash $16.280. credit Discount on Bonds Payable $250 Debit Bond Interest Expense $16.280, debit Discount on Bonds Payable $250 credit Cash S16 530. Debit Bond Interest Expense $32,560, credit Cash $32,560.