Debt Issued at a Premium (Straight Line) On January 1, 2024, Katia Crafts issued 80,000, 6-year bonds with $1,000 face value. External markets value the bonds at $840,000 more than face value. The stated rate of interest on Katia's bonds is 7%, and interest is paid annually on December 31. Required: Prepare the necessary journal entry on December 31, 2025, assuming the straight-line method is followed. If an amount box does not require an entry, leave it blank Dec. 31 Interest Expense Premium on Bonds Payable Cash Fundack Chuck My Work Any premium or discount is amortized to interest expense.