On January 1, a company issues bonds dated January 1 with a par value of $570,000. The bonds mature in 5 years. The contract rate is 8%, and interest is paid semiannually on June 30 and December 31. The market rate is 9% and the bonds are sold for $547,433. The journal entry to record the second interest paymentusing the effective interest method of amortization is:

Multiple Choice

Debit Interest Expense $24,717.02; credit Discount on Bonds Payable $1,917.02; credit Cash $22,800.00.

Debit Interest Expense $20,965.53; debit Premium on Bonds Payable $1,834.47; credit Cash $22,800.00.

Debit Interest Expense $24,634.47; credit Discount on Bonds Payable $1,834.47; credit Cash $22,800.00.

Debit Interest Expense $20,965.53; debit Discount on Bonds Payable $1,834.47; credit Cash $22,800.00.

Debit Interest Payable $22,800.00; credit Cash $22,800.00.