The following note on long-term debt is excerpted from Amazon's 2020 annual report which was issued in February, 2021. AMAZON.COM, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 6-DEBT (in millions) Interest on the Bonds and Notes is payable semi-annually. Focus on the bonds issued in 2012 which will mature in 2022. Amazon issued the 2012 bonds (\$1,250 face value, 2.5% stated interest rate) at 98.64% for about $1,233 million because the effective interest rate at the issuance date was 2.66\%. If Amazon uses straight-line amortization, the journal entry to record each interest payment is: Debit Interest Expense \$15.625 million; credit Discount on Bonds Payable \$0.85 credit Cash \$14.775. Debit Interest Expense \$16.475 million ; credit Discount on Bonds Payable \$0.85; credit Cash \$15.625. Debit Interest Expense \$15.625 million; credit Premium on Bonds Payable \$0.85 million; credit Cash \$14.775 million. Debit Interest Payable $15.625 million; credit Cash $15.625 million