any us Donas dated January 1 with a par value of $740,000. The bonds mature in 3 years. The contract rate is 10% and interest is paid semiannually on June 30 and December 31. The bonds are sold for $719,000. The Journal entry to record the first interest payment using straight-line amortization is: Multiple Choice Debit interest Expense $92000 Credit Cash $37000 Debit interest Expense $32,500 debt Discount on Bonds Payable $2,500, credt Cosh $37000 Debit interest Payable 537.000. Credit Cash $37.000 Debit interest Expense $40,500: credit Discount on Bonds Payable $3.500, credit Cash $37000 Debit Interest Expense $40,500; credit Discount on Bonds Payable $3,500; credit Cash $37,000. Debit Interest Expense $37,000; credit Premium on Bonds Payable $3,500; credit Cash $33,500