On January 1, a company issues bonds dated January 1 with a par value of $650,000. The bonds mature in 3 years. The contract rate is 6%, and interest is paid semiannually on June 30 and December 31. The bonds are sold for $626,000. The journal entry to record the first interest payment using straight-line amortization is: Multiple Choice Debit Interest Payable $19,500; credit Cash $19,500. 0 Debit Interest Expense $19,500; credit Cash $19,500. 0 Debit Interest Expense $23,500, credit Discount on Bonds Payable $4,000, credit Cash $19,500. Debt interest Expense 52 O Debit Interest Expense $15,500; debit Discount on Bonds Payable $4,000; credit Cash $19,500. 0 Debit Interest Expense $19,500; credit Premium on Bonds Payable $4,000; credit Cash $15,500