On January 1, a company issues bonds dated January 1 with a par value of $670,000. The bonds mature in 3 years. The contract rate is 10%, and interest is paid semiannually on June 30 and December 31. The bonds are sold for $652,000. The journal entry to record the first interest payment using straight-line amortization is Multiple Choice Debit Interest Payable $33,500; credit Cash $33,500. Debit Interest Expense $33,500; credit Cash $33,500 Debit Interest Expense $36,500; credit Discount on Bonds Payable $3,000; credit Cash $33,500 Debit Interest Expense $30,500; debit Discount on Bonds Payable $3,000; credit Cash $33,500 Debit Interest Expense $33,500; credit Premium on Bonds Payable $3,000; credit Cash $30,500