On January 1, a company issued and sold a $400,000, 8%, 10-year bond payable, and received proceeds of $395,000. 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 O O Debit Bond Interest Expense $16,000; credit Cash $16,000. O Debit Bond Interest Expense $32,000; credit Cash $32,000. O Debit Bond Interest Expense $15,750; debit Discount on Bonds Payable $250; credit Cash $16,000. Debit Bond int O Debit Bond Interest Expense $16,000; debit Discount on Bonds Payable $250; credit Cash $16,250. O Debit Bond Interest Expense $16,250, credit Cash $16,000; credit Discount on Bonds Payable $250