On January $1,$ a company issued and sold a $$395,000,8\%,10-$year bond payable, and received proceeds of $$390,000.$ 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 is:

Multiple Choice

Debit Bond Interest Expense $$15,800$; credit Cash $$15,800.$

Debit Bond Interest Expense $$31,600$; credit Cash $$31,600.$

Debit Bond Interest Expense $$15,550$; debit Discount on Bonds Payable $$250$; credit Cash $$15,800.$

Debit Bond Interest Expense $$15,800$; debit Discount on Bonds Payable $$250$; credit Cash $$16,050.$

Debit Bond Interest Expense $$16,050$; credit Cash $$15,800$; credit Discount on Bonds Payable $$250.$