Amortize premium by interest method Shunda Corporation wholesales parts to appliance manufacturers. On January 1, Shunda issued $20,000,000 of 5-year, 10% bonds at a market (effective) interest rate of 8%, receiving cash of $21,622,179. Interest is payable semiannually. Shunda's fiscal year begins on January 1. The company uses the interest method. a. Journalize the entries to record the following: 1. Sale of the bonds. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Account Debit Credit Cash 21,622,179 Premium on Bonds Payable Bonds Payable 20,000,000 1,622,179 2. First semiannual interest payment, including amortization of premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank, Credit Account Interest Expense Debit $37,782 Premium on Bonds Payable Cash 162.218 1,000,000 3. Second semiannual interest payment, including amortization of premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank Account Interest Expense Debit Credit 837,782 Premium on Bonds Payable 162,218 Cash 1,000,000