On January 1, a company issues bonds dated January 1 with a par value of $560,000. 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 $537,828. The journal entry to record the second interest payment using the effective interest method of amortization is: Multiple Choice Debit Interest Expense $20,597.72; debit Discount on Bonds Payable $1,802.28; credit Cash $22,400.00. Debit Interest Expense $24,202.28; credit Discount on Bonds Payable $1,802.28; credit Cash $22,400.00. Debit Interest Expense $20,597.72; debit Premium on Bonds Payable $1,802.28; credit Cash $22,400.00. Debit Interest Expense $24,283.38; credit Discount on Bonds Payable $1,883.38; credit Cash $22,400.00. Debit Interest Payable $22,400.00; credit Cash $22,400.00