On January 1, a company issued and sold a $396,000,7%, 10-year bond payable, and received proceeds of $391.000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The journal entry to record the first interest payment is: Multiple Choice Debit Bond Interest Expense $27720 Credit Cash $27720 Debit Bond Interest Expense $1410 Credit Cain $13,860. credit Discount on Bonds Payable $250 Debit Bond Interest Expense 513,610, debit Discount on Bonds Payable $250 credit Cash $19,060 Debit tond interest lixperte $19.860, debit Discount on londs Payable $250: credit Cath $14.10 Debit Gond interest Expense 513,960, credit Cash $13.960 On January 1, a company issues bords dated January 1 with a par value of $300,000. The bonds mature in 5 years. The contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The market rate is 10% and the bonds are sold for $288,413. The journal entry to record the issuance of the bond is Multiple Choice Debit Cash $288.413, credit Bonds Payable $288.413 Debit Cash $288.413; deblt Premium on Bonds Payable $11,587. credit Bonds Payable $300,000 Debit Cash $288.413, debit Discount on Bonds Payable $11,587. credit Bonds Payable $300.000 Debit Cash $300,000 credit Discount on Bonds Payable $11587 credit Bonds Payable $288.413