6. On January 1, a company issues bonds dated January 1 with a par value of $340,000. The bonds mature in 5 years. The contract rate is 11%, and interest is paid semiannually on June 30 and December 31. The market rate is 12% and the bonds are sold for $327,490. The journal entry to record the issuance of the bond is:

Debit Cash $327,490; debit Premium on Bonds Payable $12,510; credit Bonds Payable $340,000.

Debit Cash $327,490; credit Bonds Payable $327,490.

Debit Cash $327,490; debit Discount on Bonds Payable $12,510; credit Bonds Payable $340,000.

Debit Bonds Payable $340,000; debit Bond Interest Expense $12,510; credit Cash $352,510.

Debit Cash $340,000; credit Discount on Bonds Payable $12,510; credit Bonds Payable $327,490.