On January 1, your company issues a 5-year bond with a face value of $10,000 and a stated interest rate of 8%. The market interest rate is 6%. The issue price of the bond was $11,036. Your company used the effective interest method of amortization. At the end of the first year, your company should: Multiple Choice debit Interest Expense for $800, debit Premium on Bonds Payable for $138.00, and credit Interest Payable for $662.00. o debit Interest Expense for $800, credit Premium on Bonds Payable for $138.00, and credit Interest Payable for $662.00. debit interest Expense for se O debit Interest Expense for $662.00, debit Premium on Bonds Payable for $138.00, and credit Cash for $800. o oo debit Interest Expense for $662.00 and credit Interest Payable for $662.00. debit Interest Expenseren Because interest rates have fallen, a company retires bonds which had been issued at their face value of $220,000. The company bought the bonds back at 96.50. The journal entry to record this retirement includes a debit of: Multiple Choice $220,000 to Bonds Payable, a credit of $7,700 to Interest Expense, and a credit of $212,300 to Cash. $212,300 to Bonds Payable and a credit of $212,300 to Cash. O $220,000 to Bonds Payable, a credit of $7,700 to Gain on Bond Retirement, and a credit of $212,300 to Cash. $212,300 to Bonds Payable, a debit to Gain on Bond Retirement of $7,700 and a credit of $220,000 to Cash