On January $1,$ a company issues bonds dated January $1$ with a par value of $$390,000.$ The bonds mature in $5$ years. The contract rate is $9\%,$ and interest is paid semiannually on June $30$ and December $31.$ The market rate is $10\%$ and the bonds are sold for $$374,937.$ The journal entry to record the first interest payment using straight$-$line amortization is:

Multiple Choice

Debit Interest Expense $$19,056\mathrm{.}30$; credit Premium on Bonds Payable $$1,506\mathrm{.}30$; credit Cash $$17,550\mathrm{.}00.$

Debit Interest Expense $$19,056\mathrm{.}30,$ credit Discount on Bonds Payable $$1,506\mathrm{.}30$; credit Cash $$17,550\mathrm{.}00.$

Debit Interest Expense $$17,550\mathrm{.}00$; credit Cash $$17,550\mathrm{.}00.$

Debit Interest Expense $$16,043\mathrm{.}70$; debit Discount on Bonds Payable $$1,506\mathrm{.}30$; credit Cash $$17,550\mathrm{.}00.$

Debit Interest Payable $$17,550\mathrm{.}00$; credit Cash $$17,550\mathrm{.}00.$