On January 1, a company issues bonds dated January 1 with a par value of $430,000. 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 $412,577. The journal entry to record the first interest payment using straight-line amortization is IS: Multiple Choice Debit Interest Expense $13,307.70; debit Discount on Bonds Payable $1,742.30; credit Cash $15,050.00. Debit Interest Expense $16,792.30; credit Discount on Bonds Payable $1,742.30; credit Cash $15,050.00. Debit Interest Expense $15,050.00; credit Cash $15,050.00. Debit Interest Expense $16,792.30; credit Premium on Bonds Payable $1,742.30; credit Cash $15,050.00. Debit Interest Payable $15,050.00; credit Cash $15,050.00