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On January la company issues bonds dated January 1 with a par value of $350,000....

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Accounting

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On January la company issues bonds dated January 1 with a par value of $350,000. The bonds mature in 5 years. The contract rate is 7% and interest is paid semiannually on June 30 and December 31. The market rate is 6% and the bonds are sold for $364 930. The journal entry to record the first interest payment using straight-line amortization is: (Rounded to the nearest dollar) . Mumple Choice Debit mond Interest Expense 122 credit Premium on Bonds Payable $1493 cred Cash $12.50 Debit Bond Interest Expense 510757, debit Discount on Blonds Payable $1493. credit Cash $12.250 Debt Bond Interest Expense $1743, credit Discount on Bonds Payable $1493. Credit Cash $2.250 Debit interest Payable $12.250, Credit Cash $12.250 Debit Blond Interest Expense $10.757, debit Premium on Bonds Payable $149.3 credit cat $12.250

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