A Company Issued 8%, 15-Year Bonds with a Par Value $\begin{array}{|c|r|r|}\hline \text { Bond Interest Expense } & 22,000 & \\\hline \text { Cash } & & 22,000 \\\hline\end{array}$

A company issued 8%, 15-year bonds with a par value of $550,000. The current market rate is 8%. The journal entry to record each semiannual interest payment is:

A) $\begin{array}{|c|r|r|}\hline \text { Bond Interest Expense } & 22,000 & \\\hline \text { Cash } & & 22,000 \\\hline\end{array}$
B) $\begin{array}{|c|r|r|}\hline \text { Bond Interest Expense } & 44,000 & \\\hline \text { Cash } & & 44,000 \\\hline\end{array}$
C) $\begin{array}{|c|r|r|}\hline \text { Bond Interest Expense } & 555,000 & \\\hline \text { Cash } & & 555,000 \\\hline\end{array}$
D) $\begin{array}{|c|r|r|}\hline \text { Bond Interest Expense } & 660,000 & \\\hline \text { Bond Payable } & & 660,000 \\\hline\end{array}$
E) No entry is needed, since no interest is paid until the bond is due