On January 1, a company issues bonds dated January 1 with a par value of $270.000. 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 10% and the bonds are sold for $280.420. The journal entry to record the first interest payment using straight-line amortization is Debit Bond interest Expense $15.892.00: credit Discount on Bonds Payable $1.04200: credit Cash $14.85.000. Debit Bond interest Expense $13, 808.00: debit Discount on Bonds Payable $1.042.00: credit Cash $14.850.00. Debit Bond interest Expense $15.892.00: credit Premium on Bonds Payable is $1.042.00: credit Cash $14.850.00. Debit Bond interest Expense $13.808.00: debit Premium on Bonds Payable $1.042.00: credit Cash $14.850.00. Debt interest Payable $14.850.00: credit Cash $14.850.00