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ABC Company issues $1,000,000 of bonds. ABC receives cash equal to the face value. The...

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Accounting

ABC Company issues $1,000,000 of bonds. ABC receives cash equal to the face value. The bonds pay 8% interest every 6 months to the bondholders. The bonds mature in 10 years. The journal entry to record the payment of interest each 6 months would include:

A.) A debit to Interest Expense of $40,000

B.) A debit to Interest Expense of $8,000

C.) A credit to Bonds Payable of $40,000

D.) A debit to cash of $40,000

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