On January 1, a company issues bonds dated January 1 with a par value of $800,000. The bonds mature in 3 years. The contract rate is 6%, and interest is paid semiannually on June 30 and December 31. The bonds are sold for $779,000. The journal entry to record the first interest payment using straight-line amortization is: Multiple Choice Debit Interest Expense $24,000; credit Premium on Bonds Payable $3,500; credit Cash $20,500. Debit Interest Expense $20,500; debit Discount on Bonds Payable $3,500; credit Cash $24,000. Debit Interest Expense $27,500; credit Discount on Bonds Payable $3,500; credit Cash $24.000. Debit Interest Payable $24,000; credit Cash $24,000. Debit Interest Expense $24,000; credit Cash $24,000