On January $1,$ a company issued and sold a $$394,000,9\%,10-$year bond payable, and received proceeds of $$389,000.$ 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 $$17,480$; debit Discount on Bonds Payable $$250$; credit Cash $$17,730.$

Debit Bond Interest Expense $$17,730$; debit Discount on Bonds Payable $$250$; credit Cash $$17,980.$

Debit Bond Interest Expense $$17,730$; credit Cash $$17,730.$

Debit Bond Interest Expense $$17,980$; credit Cash $$17,730$; credit Discount on Bonds Payable $$250.$

Debit Bond Interest Expense $$35,460$; credit Cash $$35,460$