On January 1, a company issues bonds dated January 1 with a par value of $350.000. 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 $335.819. The journal entry to record the first interest payment using straight-line amortization is: Multiple Choice O Debit Interest Expense $13,668.10; credit Premium on Bonds Payable $1.418.10: credit Cash $12,250.00. Debit Interest Expense $13,668.10; credit Discount on Bonds Payable $1.418.10; credit Cash $12,250.00. Debit Interest Expense $12,250.00; credit Cash $12,250.00. Debit Interest Expense $10,831.90: debit Discount on Bonds Payable $1.418.10: credit Cash $12,250.00 Debit Interest Payable $12,250.00; credit Cash $12.250.00