On January 1,2013,a Company Issued and Sold a $400,000,7%,10-Year Bond $$\begin{array} { | l | r | r | } \hline \text { Bond Interest Expense } & 14,000 & \\\hline \text { Cash } & & 14,000 \\\hline\end{array}$$

On January 1,2013,a company issued and sold a $400,000,7%,10-year bond payable and received proceeds of $396,000.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) $$\begin{array} { | l | r | r | } \hline \text { Bond Interest Expense } & 14,000 & \\\hline \text { Cash } & & 14,000 \\\hline\end{array}$$
B) $\begin{array}{|l|r|r|}\hline \text { Bond Interest Expense } & 28,000 & \\\hline \text { Cash } & & 28,000 \\\hline\end{array}$
C) $\begin{array}{|l|r|r|}\hline \text { Bond Interest Expense } & 14,200 & \\\hline \text { Cash } & & 14,000 \\\hline \text { Discount on Bonds Payable } & & 200 \\\hline\end{array}$
D) $$\begin{array} { | l | r | r | } \hline \text { Bond Interest Expense } & 13,800 & \\\hline \text { Discount on Bonds Payable } & 200 & \\\hline \text { Cash } & & 14,000 \\\hline\end{array}$$
E) $$\begin{array} { | l | r | r | } \hline \text { Bond Interest Experise } & 14,000 & \\\hline \text { Discount on Bonds Payable } & 200 & \\\hline \text { Cash } & & 14,200 \\\hline\end{array}$$