QUESTION 2 2 points On January 1, a company issues bonds dated January 1 with a par value of $400,000. 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 8% and the bonds are sold for $383,793. The journal entry to record the first interest payment using straight-line amortization is: O Debit Interest Expense $15,620.70; credit Premium on Bonds Payable $1,620.70; credit Cash $14,000.00. O Debit Interest Expense $15,620.70; credit Discount on Bonds Payable $1,620.70; credit Cash $14,000.00. O Debit Interest Payable $14,000.00; credit Cash $14,000.00 O Debit Interest Expense $12,379.30; debit Discount on Bonds Payable $1,620.70; credit Cash $14,000.00 O Debit Interest Expense $14,000.00; credit Cash $14,000.00 Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers Sa 76F Mostly clear 8:30 PM 12/9/2021