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 8% and the bonds are sold for $307,034. The journal entry to record the first interest payment using straight-line amortization is: O Debit Interest Expense $11.200.00: credit Cash $11.200.00. O Debit Interest Expense $12.496.60: credit Discount on Bonds Payable $1.296.60: credit Cash $11,200.00 credit Discount on Bonds Payable $1.296.60, credit Cash Debit Interest Expense $12.496.60: credit Premium on Bonds Payable $1.296.60, credit Cash $11,200.00 O Debit Interest Payable $11200.00: credit Cash $11.200.00. O Debit Interest Expense $9.903.40; debit Discount on Bonds Payable $1.296.60, credit Cash $1,200.00 16