A company issued 8%, 15-year bonds with a par value of $500,000 that pay interest semiannually. The market rate on the date of issuance was 8%. The journal entry to record each semiannual interest payment is: Multiple Choice Debit Bond Interest Payable $33,333; credit Cash $33,333. No entry is needed, since no interest is paid until the bond is due. Debit Bond Interest Expense $40,000; credit Cash $40,000. Debit Bond Interest Expense $450,000; credit Cash $450,000. Debit Bond Interest Expense $20,000; credit Cash $20,000.
