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 $383793. The Journal entry to record the second interest payment using the effective interest method of amortization is Multiple Choice Debt interest Expense $12.648.28; debit Premium on Bonds Payable $135172 credit Cash $14,000.00 Debit interest Payable $14.000.00, credit Cash $14,000.00 Debit Interest Expense $12.648 28,debit Discount on Bonds Payable $1,35172. credit Cash $14,000.00 Debit. Interest Expense $15.35172, credit Discount on Bonds Payable $45172. credit Cash $14,000.00 Debit interest Expense $15.405 79. credit Discount on Bonds Payable $1,405 79. credit Cash $14.00000