On January 1, a company issues bonds dated January 1 with a par value of $370,000. The bonds mature in 5 years. The contract rate is 11%, and interest is paid semiannually on June 30 and December 31. The market rate is 12% and the bonds are sold for $356,386. The journal entry to record the issuance of the bond is Debit Cash $356,386; credit Bonds Payable $356,386. Debit Cash $356,386; debit Discount on Bonds Payable $13,614; credit Bonds Payable $370,000. Debit Bonds Payable $370,000; debit Interest Expense $13,614; credit Cash $383,614. Debit Cash $356,386; debit Premium on Bonds Payable $13,614; credit Bonds Payable $370,000. Debit Cash $370,000; debit Discount on Bonds Payable $13,614; credit Bonds Payable $383,614