TB MC Qu. 10-130 (Algo) On January 1, a company issues... On January 1, a company issues bonds dated January 1 with a par value of $260,000. 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 6% and the bonds are sold for $271,091. The journal entry to record the first interest payment using straight-line amortization is. (Rounded to the nearest dollor.) Multiple Choice Debit Band interest Expense \$10,209, credit Premium on Bonds Poyeble \$1,09; credit Cash \$9,100 Debit Bond interest Expense \$7,991, debit Premum on Bonds Payabie \$1,09, credit Cash $9,100 Debit Bond interest Expense $10,209. credt Discount on Bonds Payoble $1,109, credit Cash $9,100 Debit Bond Interest Expense $10,209, credit Premium on Bonds Payable $1,109, credit Cash $9,100. Debit Bond Interest Expense \$7,991, debit Premium on Bonds Payable \$1,109, credit Cash \$9,100. Debit Bond Interest Expense $10,209, credit Discount on Bonds Poyoble $1,109; credit Cosh $9,100. Debit Bond Interest Expense \$7,991, debit Discount on Bonds Payoble \$1,109, credit Cash $9,100 Debit interest Poyable $9,100; credir Cash $9,100