On January $1,$ a company issues bonds dated January $1$ with a par value of $$710,000.$ The bonds mature in $3$ years. The contract rate is $8\%,$ and interest is paid semiannually on June $30$ and December $31.$ The bonds are sold for $$698,000.$ The journal entry to record the first interest payment using straight$-$line amortization is:

Multiple Choice

Debit Bond Interest Expense $$28,400$; credit Cash $$28,400.$

Debit Bond Interest Expense $$26,400$; debit Discount on Bonds Payable $$2,000$; credit Cash $$28,400.$

Debit Bond Interest Expense $$30,400$; credit Discount on Bonds Payable $$2,000$; credit Cash $$28,400.$

Debit Bond Interest Expense $$28,400$; credit Premium on Bonds Payable $$2,000$; credit Cash $$26,400.$

Debit Interest Payable $$28,400$; credit Cash $$28,400.$