On January 1, a company issues bonds dated January 1 with a par value of $470,000. 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 $452,707. The journal entry to record the issuance of the bond is:

Debit Cash $452,707; credit Bonds Payable $452,707.

Debit Cash $452,707; debit Premium on Bonds Payable $17,293; credit Bonds Payable $470,000.

Debit Cash $470,000; credit Discount on Bonds Payable $17,293; credit Bonds Payable $452,707.

Debit Bonds Payable $470,000; debit Bond Interest Expense $17,293; credit Cash $487,293.

Debit Cash $452,707; debit Discount on Bonds Payable $17,293; credit Bonds Payable $470,000.