On January 1, a company issued and sold a $396,000,7%, 10 year bond payable, and received proceeds of $391,000. 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 $27720 Credit Cash $27.720 Debit Bond Interest Expense $14,110, credit Cash $13.860 Credit Discount on Bonds Payable $250 Debit Bond Interest Expense 513610, debit Discount on Bonds Payable $250 credit Cash $13.860 Debt Bond Interest Expense $13.860, debit Discount on Bonds Payable $250, credit Cash $14,110 Debit Bond interest Expense 3.0 Credit Cash $13.860