On January 1, 2021, Blue Corporation issues $200,000, 5-year, 8% bonds at 105. Interest is paid semiannually on January 1 and July 1. Orange Corporation uses the straight-line method of amortization. The company's fiscal year ends on December 31 The necessary journal entry on January 1, 2022 includes: debit to Interest Payable of $8,000 a debit to interest Expense of 7.000 a credit to interest Payable of $8,000 a debit to Premium on Bonds Payable of $1,000