5.PremiumAmortization

On the first day of the fiscal year, a company issues a $5,000,000, 7%, five-yearbondthat pays semiannual interest of $175,000 ($5,000,000 7% ), receiving cash of $5,400,000.

Journalize the first interest payment and the amortization of the related bond premium. If an amount box does not require an entry, leave it blank.

Account Title Debit Credit

______ $___ $___

______ $___ $___

______ $___ $___