MC Qu. 149 On January 1, a company issues... On January 1, a company issues bonds dated January 1 with a par value of $320,000. The bonds mature in 5 years. The contract rate is 7% and Interest is paid semiannually on June 30 and December 31. The market rate is 6% and the bonds are sold for $333,650. The Journal entry to record the issuance of the bond is: Multiple Choice Debit Cash $333,650. credit Discount on Bonds Payable 513,650; credit Bonds Payable $320,000 Debit Cash 5333,650; credit Premium on Bonds Payable $13,650; credit Bonds Payable $320,000 Debit Cash $333,650, credit Bonds Payable $333,650. Debit Con 120.000 debit Premium on Bonds Payable $13.650, credit Gonds Payable 5333,650 Debit Bonds Payable $320.000, debit Bond Interest Expense $13.650;credit carn $333.650