Save & EX On January 1, a company issues bonds dated January 1 with a par value of $320,000. 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 $307,034. The Journal entry to record the first interest payment using the effective interest method of amortization is Multiple Choice Debit interest Expense $10,119, debit Discount on Bonds Payable 51081, Credit Cash $11.200 Debit Interest Expense $12.281; credit Premium on Bonds Payable 51.08t; credit Cash $11.200 Debit interest Expense 512.281, credit Discount on Bonds Payable 5108t credit Cash $11.200 Debit interest Payable S1L200 Credit Cash $1,200, Debit interest Expense S10.119. det Premium on Bonds Payable $10B1. Credit Cash $11.200