On January 1, a company issues bonds dated January 1 with a par value of $300.000. The bonds mature in 5 years. The contract rate is 99, and interest is paid semiannually on June 30 and December 31. The market rate is 89 and the bonds are sold for $312.177. The journal entry to record the first interest payment using straight line amortization is: O A Debit interest Payable 513,500: credit cash $13,500.00 8. Debit Bond Interest Expense 512,282.30: debit Discount on Bonds Payable $1.217.70: credit Cash $13.500.00 OC. Debit Bond Interest Expense $14,717.70: credit Premium on Bonds Payable 51.217.70; credit Cash $13,500.00 D. Debit Bond interest Expense $14.717.70; credit Discount on Bonds Payable $1.217.70: credit Cash $13,500.00 E Debit Bond interest Expense 512.282.30: debit Premium on Bonds Payable $1,217.70: credit Cash $13,500.00