07 On January a company issues bonds dated January 1 with a par value of $340,000. The bonds mature in 5 years. The contract rate is 16 and interest is paid semiannually on June 30 and December 31. The market rate is 10% and the bonds are sold for $353,322. The journal entry to record the first Interest payment using straight-line amortization is: (Rounded to the nearest dollar.) Multiple Choice Debit Bond Interest Expense $20,012; credit Premium on Bonds Payable $1,312, credit Cash $18,700 Debit Bond Interest Expense $17,388, debit Discount on Bonds Payable $1,312, credit Cash 518,700. Debit Bond Interest Expense $17,388; debit Premium on Bonds Payable $1,312; credit Cash $18,700, Debit Interest Payable $18,700, credit Cash $18,700, Debit Bond Interest Expense $20,012; credit Discount on Bonds Payable $1,312, credit Cash $18,700