QUESTION 17 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 36 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: A Debit interest Payable $13.500; Credit Cash $13,500.00 B. Debit Bond Interest Expense $12,282.30, debit Discothit on Bonds Payable $1.217.70, credit Cash $13,500.00 C. Debit Bond Interest Expense $14,717.70; credit Premium on Bonds Payable $1,217.70; Credit Cash $13,500.00 D. Debit Bond Interest Expense 514,717.70, credit Discount on Bonds Payable $1,217.70; Credit Cash $13,500.00 E. Debit Bond Interest Expense $12,282,30; debit Premium on Bonds Payable $1,217,70 Credit Cash $13,500.00