Refer to Exhibit 14-2.The entry to record the sale would include a

A) credit to Interest Expense for $6, 000
B) debit to Cash for $400, 000
C) credit to Bonds Payable for $406, 000
D) credit to Premium on Bonds Payable for $6, 000

Face Value

The nominal value or dollar value printed on a financial instrument like a bond or bill, representing its worth at maturity.

Accrued Interest

Interest that has been earned but not yet paid, typically relating to bonds or loans, accruing daily until the payment date.

Interest Payment Periods

The specific intervals at which interest payments are made on a debt instrument, such as monthly, quarterly, or annually.