On January 1, a company issues bonds dated January 1 with a par value of $230,000. 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 $239, 811. The journal entry to record the first interest payment using the effective interest method of amortization is: Debit Interest Expense $719433: debit Premium on Bonds Payable $565.67: credit Cash $8, 050.00. Debit Bond Interest Expense $7, 068.90: debit Premium on Bonds Payable $981.10: credit Cash $8, 050.00. Debit Interest Payable $8, 050.00: credit Cash $8050.00. Debit Bond Interest Expense $7, 194.33: debit Discount on Bonds Payable $855.67: credit Cash $8, 050.00. Debit Bond Interest Expense 9, 03110: credit Premium on Bonds Payable $98110: credit Cash $8, 050.00