V-Chapters 9-11 0 002838 Saved Help Save & Exit Submit On January 1, a company issues bonds dated January 1 with a par value of $390,000. 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 10% and the bonds are sold for $374,937 The journal entry to record the issuance of the bond is Multiple Choice Debit Cash $374,937; credit Bonds Payable $374,937 Debit Bonds Payable $390,000, oebis Bond Interest Expense $15.063 creat Cash $405.063 Debt Cash $300,000: creat Discount on Bonds Pays $15.063 owot Bonds Peyale $274,937