Saved Help Save & Exit Su On January 1, a company issues bonds dated January 1 with a par value of $340,000. The bonds mature in 5 years. The contract rate is 11%, and Interest is paid semiannually on June 30 and December 31. The market rate is 12% and the bonds are sold for $327,490. The journal entry to record the first interest payment using the effective interest method of amortization is: Multiple Choice Debit Interest Expense $19,649; credit Discount on Bonds Payable $949; credit Cash $18.700. Debit interest Expense $17,751; debit Premium on Bonds Payable $949, credit Cash $18,700. O o o Debit Interest Expense $19,649; credit Premium on Bonds Payable $949; credit Cash $18,700. Debit Interest Payable $18,700; credit Cash $18,700. o Debit Interest Expense $19,649; credit Discount on Bonds Payable $949; credit Cash $18,700. Debit Interest Expense $17,751; debit Premium on Bonds Payable $949; credit Cash $18,700. Debit Interest Expense $19,649; credit Premium on Bonds Payable $949; credit Cash $18,700. Debit Interest Payable $18,700; credit Cash $18,700. Debit Interest Expense $17,751; debit Discount on Bonds Payable $949; credit Cash $18,700