Daan Corporation wholesales repair products to equipment manufacturers. On April 1, 2014, Daan Corporation issued $2,200,000 of 5-year, 8% bonds at a market (effective) interest rate of 6%, receiving cash of $2,387,665. Interest is payable semiannually on April 1 and October 1. b. Journalize the entry to record the first interest payment on October 1, 2014, and amortization of bond premium for six months, using the straight-line method. (Round to the nearest dollar.) For a compound transaction, if an amount box does not require an entry, leave it blank.

Interest Expense Premium on Bonds Payable Cash 82370.05 o 5629.95 88000