QUESTION 6 1 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: Oa. Debit Bond Interest Expense $14,000; debit Discount on Bonds Payable $200; credit Cash $14,200 b. Debit Bond Interest Expense S13,800; debit Discount on Bonds Payable S200; credit Cash $14,000 Oc. Debit Bond Interest Expense $28,000; credit Cash $28,000 d. Debit Bond Interest Expense S14,200; credit Cash $14,000; credit Discount on Bonds Payable $200 1 po QUESTION 7 A corporation issued 7%, 10 year bonds with a par value of $4,000,0000. The bonds pay semiannual interest. The market interest rate is 9% and the bond selling price was $3,728,194. The entry to record the issuance of the bond should be: a. Debit Cash S3,728,194; debit Interest Expense S271,806; credit Bonds Payable $4,000,000. b. Debit Cash $3,728,194; debit Discount on Bonds Payable $271,806; credit Bonds Payable $4,000,000 c Debit Cash $4,000,000; credit Bonds Payable $3,728,194credit Discount on Bonds Payable S271,806, d. Debit Cash $3,728,194; credit Bonds Payable $3,728,194