On January $1,$ a company issues bonds dated January $1$ with a par value of $$460,000.$ The bonds mature in $5$ years. The contract rate is $8\%,$ and interest is paid semiannually on June $30$ and December $31.$ The market rate is $9\%$ and the bonds are sold for $$441,788.$ The journal entry to record the second interest payment using the effective interest method of amortization is:

Multiple Choice

Debit Interest Expense $$16,919\mathrm{.}55$; debit Discount on Bonds Payable $$1,480\mathrm{.}45$; credit Cash $$18,400\mathrm{.}00.$

Debit Interest Expense $$19,947\mathrm{.}07$; credit Discount on Bonds Payable $$1,547\mathrm{.}07$; credit Cash $$18,400\mathrm{.}00.$

Debit Interest Expense $$19,880\mathrm{.}45$; credit Discount on Bonds Payable $$1,480\mathrm{.}45$; credit Cash $$18,400\mathrm{.}00.$

Debit Interest Expense $$16,919\mathrm{.}55$; debit Premium on Bonds Payable $$1,480\mathrm{.}45$; credit Cash $$18,400\mathrm{.}00.$

Debit Interest Payable $$18,400\mathrm{.}00$; credit Cash $$18,400\mathrm{.}00.$