q5

Question 5 1 points Save Answer On January 1, a company issued and sold a $400,000,7%, 10-year bond payable and received proceeds of $392,000. 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 Debit Bond Interest Expense $28,000; credit Cash $28,000 Debit Bond Interest Expense $13,800; debit Discount on Bonds Payable $200, credit Cash $14,000 O Debit Bond Interest Expense $14,400; credit Cash $14,000 credit Discount on Bonds Payable $400 Debit Bond Interest Expense $14,000, debit Discount on Bonds Payable $200, credit Cash $14,200 Question 5 of 5