On January 1, a company issued and sold a $400,000, 7%, 10-year bond payable, and received proceeds of $396,000. 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 $14,000, debet Discount on Bonds Payable $200, credit Cash $14,200. O Debit Bond Interest Expense $14,000 credit Cash $14,000. Debit Bond Interest Expense $13,800, debit Discount on Bonds Payable $200; credit Cash $14,000. Debit Bond interest Expense $14,200; credit Cash $14.000 credit Discount on Bonds Payable $200 Debit Bond Interest Expense $28,000, credit Cash $28,000