On january 1, a company issued and sold a $407,000, 8%, 10-year bond payable, and received proceeds of $402,000. 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: multiple choice debit bond interest expense $16,280; debit discount on bonds payable $250; credit cash $16,530. debit bond interest expense $16,030; debit discount on bonds payable $250; credit cash $16,280. debit bond interest expense $32,560; credit cash $32,560. debit bond interest expense $16,280; credit cash $16,280. debit bond interest expense $16,530; credit cash $16,280; credit discount on bonds payable $250.