On January 1, a company issued and sold a $408,000, 9%, 10-year bond payable, and received proceeds of $403,000. 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 $18,360; credit Cash $18,360. Debit Bond Interest Expense $36,720; credit Cash $36,720.

On January 1, a company issued and sold a $408,000,9%,10-year bond payable, and received proceeds of $403,000 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 $18,360; credit Cash $18,360. Debit Bond Interest Expense $36,720; credit Cash $36,720