Jones Corporation issued $400,000 of its 8%, 10-year bonds, dated January 1, 2016, at face value plus accrued interest on May 1, 2016. Interest is paid on January 1 and July 1. Jones uses the most common method to record the sale of the bonds between interest payment periods. Refer to Exhibit 14-6. The entry to record the sale would include a

debit to Cash for $400,000

credit to Interest Expense for $10,667

credit to Bonds Payable for $410,667

credit to Premium on Bonds Payable for $10,667