Amortize premium by interest method Shunda Corporation wholecales parts to appliance manufacturers. On January 1 , Shunda issued $20,000,000 of 5 -year, 10% bonds at a market (etfective) interest rate of 8%, receiving cash of $21,622,179. Interest is payable semannually. Shunda's fiscal year begins on 3anuary 1 . The company uses the interest method. a. lournalize the entries to record the following