Magenta Corporation issued $500,000 of its 6%, 10-year bonds, dated January 1, 2016, at face value plus accrued interest on September 1, 2016. Interest is paid on June 30 and December 31. Magenta uses the most common method to record the sale of the bonds between interest payment periods.

Refer to Exhibit 14-7. The entry to record the payment of interest on December, 2016, would include

a debit to Bond Interest Payable for $5,000

credit to Cash for $5,000

credit to Cash for $10,000

debit to Bond Interest Expense for $15,000