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: Debit Bond Interest Expense $14,000; credit Cash $14,000. Debit Bond Interest Expense $28,000; credit Cash $28,000. Debit Bond Interest Expense $14,000; debit Discount on Bonds Payable $200; credit Cash $14, 200. 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