On January 1, a company issues bonds dated January 1 with a par value of $400,000. The bonds mature in 5 years. The contract rate is 7%, and interest is paid semiannually on June 30 and December 31. The bonds are sold for $383,793. The journal entry to record the issuance of the bond is: Select one: a. Debit Bonds Payable $400,000; debit Interest Expense $16,207; credit Cash $416,207. b. Debit Cash $383,793; debit Premium on Bonds Payable $16,207; credit Bonds Payable $400,000. c. Debit Cash $383,793; debit Discount on Bonds Payable $16,207; credit Bonds Payable $400,000. d. Debit Cash $400,000; debit Discount on Bonds Payable $16,207; credit Bonds Payable $416,207.