On January 1, a company issues bonds dated January 1 with a par value of $300,000. The bonds mature in 5 years. The contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The market rate is 8% and the bonds are sold for $312.177. The Journal entry to record the first interest payment using straight line amortization is Multiple Choice Debt Bond Interest Expense $12,282 30, debit Discount on Bonds Payable $1,21770, credit Cash $13,500.00 Debit interest Payable $13.500; credit Cash $13,500.00 Debit Bond Interest Expense $14.71770. credit Discount on Bonds Payable $121770, credit Cash $13,500.00 Debit Bond Interest Expense $14,71270: credit Premium on Bonds Payable $1.21770, Credit Cash $13,500.00 Dobit Bond Interest Expense $12.282 30. debit Premium on Bonds Payable $121770. Credit Cash $13,500.00