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 10% and the bonds are sold for $384,280. The journal entry to record the issuance of the bond is: Debit Bonds Payable $370,000; debit Interest Expense $14,280; credit Cash $384,280. Debit Cash $384,280; credit Discount on Bonds Payable $14,280; credit Bonds Payable $370,000.( wrong answer) Debit Cash $384,280; credit Premium on Bonds Payable $14,280; credit Bonds Payable $370,000. Debit Cash $384,280; credit Bonds Payable $384,280. Debit Cash $370,000; debit Premium on Bonds Payable $14,280; credit Bonds Payable $384,280