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Content Remaining Time:04 minutes, 29 seconds. Question Completion Status: QUESTION 6 1 point On January 1, a company issued and sold a $400,000, 7%, 10-year bond payable, and received proceeds of $396,000. 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 ist Ca. Debit Bond Interest Expense $14,000; debit Discount on Bonds Payable $200; credit Cash $14,200 Ob. Debit Bond Interest Expense $13,800; debit Discount on Bonds Payable $200; credit Cash $14,000 c Debit Bond Interest Expense $28,000; credit Cash $28,000 d. Debit Bond Interest Expense $14,200; credit Cash $14,000; credit Discount on Bonds Payable $200 1 points QUESTION 7 A corporation issued 7%, 10-year bonds with a par value of $4,000,0000. The bonds pay semiannual interest. The market interest rate is 99 and the bond selling price was $3,728,194. The entry to record the issuance of the bond should be a. Debit Cash $3,728,194; debit Interest Expense $271,806; credit Bonds Payable $4,000,000 b. Debit Cash $3,728,194; debit Discount on Bonds Payable 5271,806; credit Bonds Payable $4,000,000. c. Debit Cash $4,000,000; credit Bonds Payable $3,728,194; credit Discount on Bonds Payable $271,806. Debit Cash $3,728,194; credit Bonds Payable 53,728,194