On January 1, a company issues bonds dated January 1 with a par value of $380,000. 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 $364.603. The journal entry to record the first interest payment using the effective interest method of amortization is: Multiple Choice Debit Interest Payable $13,300 Credit Cash $13,300. Debit Interest Expense $14.584. credit Discount on Bonds Payable 51284, credit Cash $13.300 Debit Interest Expense $12.016: debit Discount on Bonds Payable $1.284. Credit Cash $13.300. Debit Interest Payable $13,300; credit Cash $13,300. Debit Interest Expense $14,584; credit Discount on Bonds Payable $1,284; credit Cash $13,300. Debit Interest Expense $12,016; debit Discount on Bonds Payable $1,284; credit Cash $13,300. ws Debit Interest Expense $12,016; debit Premium on Bonds Payable $1,284; credit Cash $13,300, Debit Interest Expense $14,584; credit Premium on Bonds Payable $1,284; credit Cash $13,300