On January 1 , a company issues bonds dated January 1 with a par value of $470,000. The bonds mature in 5 years. The contract rate is 11%, and interes is paid semiannually on June 30 and December 31 . The market rate is 12% and the bonds are sold for $452,707. The journal entry to record the first interest payment using the effective interest method of amortization is: Multiple Choice. Debit interest Expense $24,538; debit Discount on Bonds Payable $1,312, credit Cash $25,850. Debit interest Payable $25,850; credit Cash $25,850. Debit interest Expense \$27,62; credit Discount on Bands Payable \$1,312; credit Cash $25,850 Debit Interest Expense $27162; credit Premium on Bonds Payable \$1.312; credit Cash $25,850. Debit intereat Esnense $24,538; debil Premum on Bonds Payable $1,312; credit Cnsh $25,850