On January 1, a company issues bonds dated January 1 with a par value of $490,000. 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 8% and the bonds are sold for $470146. The journal entry to record the first interest payment using the effective interest method of amortization is: Multiple Choice Debit Interest Expense $18,806; credit Premium on Bonds Payable $1,656; credit Cash $17150 Debit Interest Expense $15,494; debit Discount on Bonds Payable $1,656; credit Cash $17,150 Debit Interest Expense $15,494; debit Premium on Bonds Payable $1,656; credit Cash $17150 Debit Interest Payable $17,150; credit Cash $17150. Debit Interest Expense $18,806; credit Discount on Bonds Payable $1,656; credit Cash $17150