On April 1, Year 1, Greenway Corporation issues $20 million of 10%, 20-year bonds payable at par. Interest on the bonds is payable semiannually each April 1 and October 1.

Refer to the information above. The journal entry to record the first cash payment to bondholders on October 1, year 1, will include: A debit to Interest Expense of $1,000,000.

A credit to Interest Payable of $1,000,000.

A debit to Bonds Payable of $1,000,000.

A credit to Cash of $2,000,000.