On January 1, a company issues bonds dated January 1 with a par value of $450,000 The bonds mature in 5 years The contract rate is 10 , and interest is paid semiannually on June 30 and December 31 The market rate is 11 and the bonds are sold for $433,026 The journal entry to record the second interest payment using the effective interest method of amortization is Multiple Choice O Debit Interest Expense $21,183 57 debit Premium on Bonds Payable $1,316 43 credit Cash $22,500 00 Debit Interest Payable $22,500 00 credit Cash $22,500 00 O Debit Interest Expense $21,183 57 debit Discount on Bonds Payable $1,316 43 credit Cash $22,500 00 Debit Interest Expense $23,816 43 credit Discount on Bonds Payable $1,316 43 credit Cash $22,500 00 Debit Interest Expense $23,888 83 credit Discount on Bonds Payable $1,388 83 credit Cash $22,500 00

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On January 1, a company issues bonds dated January 1 with a par value of $450,000  The bonds mature in 5 years  The contract rate is 10 , and interest is paid semiannually on June 30 and December 31  The market rate is 11  and the bonds are sold for $433,026  The journal entry to record the second interest payment using the effective interest method of amortization is  Multiple Choice O Debit Interest Expense $21,183 57  debit Premium on Bonds Payable $1,316 43  credit Cash $22,500 00  Debit Interest Payable $22,500 00  credit Cash $22,500 00 O Debit Interest Expense $21,183 57  debit Discount on Bonds Payable $1,316 43  credit Cash $22,500 00 Debit Interest Expense $23,816 43  credit Discount on Bonds Payable $1,316 43  credit Cash $22,500 00 Debit Interest Expense $23,888 83  credit Discount on Bonds Payable $1,388 83  credit Cash $22,500 00

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Question: On January 1, a company issues bonds dated January 1 with a par value of $450,000. The bonds mature in 5 years. The contract rate

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