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 10% and the bonds are sold for $353,122. The journal entry to record the issuance of the bond is: Multiple Choice 122 credi Bonds Payebie $353122 Debit Cash $353,122: credit Bonds Payable $353,122 Debit Cash $340,000, debit Premium on Bonds Payable $13.122; credit Bonds Payable $353122. Discussions So con Debit Cash $353122; credit Discount on Bonds Payable $13122: credit Bonds Payable $340,000 Debit Bonds Payable $340,000, debit Bond Interest Expense $13,122; credit Cash $353.122 Debit Cash $353122 credit Premium on Bonds Payable $13,122; credit Bonds Payable
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