QUESTION 6 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: A Debit Bond Interest Expense 314,000 credit Cash $14,000 B. Debit Bond Interest Expense $28,000, credit Cash $28,000. C. Debit Bond Interest Expense $14,000; debit Discount on Bonds Payable $200 Credit Cash $14.200 D. Debit Bond Interest Expense $13,800, debit Discount on Bonds Payable $200 Credit Cash $14.000 E. Debit Bond Interest Expense $14,200, credit Cash $14,000; credit Discount on Bonds Payable $200