On January 1, a company issues bonds dated January 1 with a par value of $530,000. The bonds mature in 5 years. The contract rate is 8%, and interest is paid semiannually on June 30 and December 31. The market rate is 9% and the bonds are sold for $509,016. The journal entry to record the second interest payment using the effective interest method of amortization is: Multiple Choice Debit Interest Payable $21,200.00; credit Cash $21,200.00. Debit Interest Expense $22,905.73; credit Discount on Bonds Payable $1,705.73; credit Cash $21,200.00. Debit Interest Expense $22,982.49; credit Discount on Bonds Payable $1,782.49; credit Cash $21,200.00. Debit Interest Expense $19,494.27; debit Discount on Bonds Payable $1,705.73; credit Cash $21,200.00. O Debit Interest Expense $19,494.27; debit Premium on Bonds Payable $1,705.73; credit Cash $21,200.00. Wallace and Simpson formed a partnership with Wallace contributing $68,000 and Simpson contributing $48,000. Their partnership agreement calls for the income (loss) division to be based on the ratio of capital investments. Wallace sold one-half of his partnership interest to Prince for $57,000 when his capital balance was $80,000. The partnership would record the admission of Prince into the partnership as: Debit Wallace, Capital $57,000; credit Prince, Capital $57,000. Debit Wallace, Capital $40,000; credit Prince, Capital $40,000. Debit Wallace, Capital $40,000; debit Cash $17,000; credit Prince, Capital $57,000. Debit Wallace, Capital $34,000; credit Prince, Capital $34,000. Debit Prince, Capital $57,000; credit Wallace, Capital $57,000