On January 1, a company issues bonds dated January 1 with a par value of $500,000. The bonds mature in 5 years. The contract rate is 7%, and interest is paid semiannually on June 30 and December 31. The market rate is 8% and the bonds are sold for $479,741. The journal entry to record the second interest payment using the effective interest method of amortization is: Multiple Choice Debit Interest Expense $19,257.22; credit Discount on Bonds Payable $1,757.22; credit Cash $17,500.00. Debit Interest Expense $15,810.37, debit Discount on Bonds Payable $1,689.63; credit Cash $17,500.00 Debit Interest Expense $15,810.37; debit Premium on Bonds Payable $1,689.63; credit Cash $17,500.00 Debit Interest Expense $19,189.63; credit Discount on Bonds Payable $1,689.63; credit Cash $17,500.00 Debit Interest Payable $17,500.00, credit Cash $17,500.00