On January 1, a company issued and sold a $394,000, 9%, 10-year bond payable, and received proceeds of $389,000. 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 $17,980; credit Cash $17,730; credit Discount on Bonds Payable $250
B) Debit Bond Interest Expense $17,730; debit Discount on Bonds Payable $250; credit Cash $17,980
C) Debit Bond Interest Expense $17,480; debit Discount on Bonds Payable $250; credit Cash $17,730
D) Debit Bond Interest Expense $35,460; credit Cash $35,460