Rhyolite issued a 5 year, $1,000,000 bond with a 6% stated interest rate on January 1 that pays interest annually each December 31. At the date of issue, the market rate was 5%. The correct journal entry would include a debit to Cash for $1,000,000 and a credit to Bond Payable for $1,000,000. Cash for $1,043,300 and a credit to Premium on Bond Payable for $43,300 and a credit to Bond Payable for $1,000,000. Cash for $1,007,030 and a credit to Premium on Bond Payable for $7,030 and a credit to Bond Payable for $1,000,000. Cash for $1,060,000 and a credit to Interest Payable for $60,000 and a credit to Bond Payable for $1,000,000.