A bond was issued at a discount. The journal entry to record the semiannual interest payment would include a:

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When a bond is issued at a discount, it means that the bond's face value is higher than the amount of cash received from the bond issuance. The difference between the face value and the cash received is recorded as a discount on bonds payable, which represents an additional cost of borrowing.

The semiannual interest payment is calculated based on the bond's face value, not the amount of cash received. Therefore, the interest expense is debited for the full amount of the semiannual interest payment, while the discount on bonds payable is credited for the amount of interest that represents the additional cost of borrowing. The remaining amount is credited to cash, representing the actual cash paid to bondholders. Therefore, the journal entry to record the semiannual interest payment would include a debit to interest expense and a credit to discount on bonds payable and a credit to cash. Option A is the correct choice.

A Bond Was Issued at a Discount