On January 1, a company issues bonds dated January 1 with a par value of $360,000. The bonds mature in 5 years. The contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The market rate is 10% and the bonds are sold for $346,096. The journal entry to record the first interest payment using straight-line amortization is: Multiple Choice Debit Interest Expense $17,590.40; credit Discount on Bonds Payable $1,390.40; credit Cash $16,200.00. Debit Interest Expense $17,590.40; credit Premium on Bonds Payable $1,390.40; credit Cash $16,200.00. Debit Interest Expense $14,809.60; debit Discount on Bonds Payable $1,390.40; credit Cash $16,200.00. Debit Interest Payable $16,200.00; credit Cash $16,200.00. Debit Interest Expense $16,200.00; credit Cash $16,200.00.

On January 1, a company issues bonds dated January 1 with a par value of $360,000. The bonds mature in 5 years. The contract rate is 9%, and interest is poid semiannually on June 30 and December 31 . The market rate is 10% and the bonds are sold for $346,096. The journal entry to record the first interest poyment using straight-fine amortization is: Muniple Choice Debn interest Expense 517.590 .40 , credit Discount on Bonds Poybbie $1.390.40, credit Cash 516.20000 Debt interest Espense \$12,590.40, credt Piemium on Bonds Payable $1390.40, ciedit Cash $16,20000. Oebit interent Expense \$14.809.60; debat Discount on Bonds Payable $1390,40. credit Cash $16.20000. Debit interest Perable $16.20000, credt Cash $16.20000 Dobit interest Expense $16,700.00 credt Cash $15,20000