On January 1, a company issues bonds dated January 1 with a par value of $410,000. 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 $393,387. The journal entry to record the second interest payment using the effective interest method of amortization is: Multiple Choice Debit Interest Expense $12,964.50; debit Premium on Bonds Payable $1,385.50; credit Cash $14,350.00. Debit Interest Payable $14,350.00; credit Cash $14,350.00. Debit Interest Expense $12,964.50; debit Discount on Bonds Payable $1,385.50; credit Cash $14,350.00. Debit Interest Expense $15,735.50; credit Discount on Bonds Payable $1,385.50; credit Cash $14,350.00 Debit Interest Expense $15,790.92: credit Discount on Bonds Payable $1,440.92; credit Cash $14,350.00