On January 1, a company issues bonds dated January 1 with a par value of $520,000. 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 $498,930. The journal entry to record the second interest payment using the effective interest method of amortization is Muple Choice Debit interest Payable $18,200.00, credit Cash $1,200.00 O Debit Interest Expense $20.02750 credit Discount on Bonds Payable $182750 credit Cash $18,200.00 Debit interest Expense $16.4278, debit Discount on Bonds Payable $175722, credit Can $18.20000 Debit Interest Expense $10,95722; creat Discount on Bonds Peste $175722 Cash $1,200.00 Debit Interest Experse $16,442.78, debt Phenium an Bonds Payable $175722, od Cash $18.300.00