On January 1, a company issues bonds dated January 1 with a par value of $390,000. The bonds mature in 5 years. The contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The market rate is 10% and the bonds are sold for $374, 937. The journal entry to record the issuance of the bond is: Debit Bonds Payable $390,000; debit Bond Interest Expense $15,063; credit Cash $405,063. Debit Cash $390,000; credit Discount on Bonds Payable $15,063; credit Bonds Payable $374, 937. Debit Cash $374, 937; credit Bones Payable $374, 937 Debit Cash $374, 937; debit Premium on Bonds Payable $15,063; credit Bonds Payable $390,000. Debit Cash $374, 937; debit Discount on Bonds Payable $15,063; credit Bonds Payable $390,000