On January 1, a company issues bonds dated January 1 with a par value of $320,000. 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 $333,650. 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 12,565; credit Premium on Bonds Payable $1,365; credit Cash $11,200. Debit Bond Interest Expense $9,835; debit Premium on Bonds Payable $1,365; credit Cash $11,200. Debit Bond Interest Expense $10,010; debit Discount on Bonds Payable $1,190; credit Cash $11,200. Debit Bond Interest Expense $10,010; debit Premium on Bonds Payable $1,190; credit Cash $11,200. Debit Interest Payable $11,200; credit Cash $11,200