QUESTION 13 1 po A company issues $20,000, 10%, 2-year bonds at par value. Interest is payable semiannually. What journal entry does the issuer make to record the interest it pays semiannually? Debits Bond Interest Expense $1,000 and credits Cash $1,000 Debits Bonds Payable $2,000 and credits Cash $2,000 Debits Cash $1,000 and credits Bonds Payable $1,000 Debits Cash $2,000 and credits Bond Interest Expense $2,000 QUESTION 14 A company borrows $125,000 by signing a 9%, 5 year, installment note requiring equal annual payments of $32,136 at the end of each year. What journal entry does the borrower make to record the first installment payment of principal and interest? Debits interest Expense for $7,136, debits Notes Payable for $25,000, and credits Cash for $32.136 Debits interest Expense for $11,250, debits Notes Payable for $20,886, and credits Cash for $32,136 Debits Notes Payable for $32,136 and credits Cash for $32,136 Debits Notes Payable for $32,136, debits Interest Payable for $11,250, and credits Cash for $43,386