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 6% and the bonds are sold for $364,930. The journal entry to record the first interest payment using the effective interest method of amortization is: (Rounded to the nearest dollar.) Multiple Choice Debit Bond Interest Expense $10,75700; deblt Premlum on Bonds Payable $1,493.00; credit Cash $12,250.00 Debit Interest Payable $12,250.00; credit Cash $12,250.00. Debit Bond Interest Expense $10,948.00, deblt Discount on Bonds Payable $1,30200: credit Cash $12,250.00. Debit Bond Interest Expense 13,743.00: credit Premium on Bonds Payable $1493.00; credit Cash $12,250.00. Debit Bond Interest Expense $10,948, deblt Premlum on Bonds Payable $1,302: credit Cash $12,250