eBook Show Me How Premium Amortization On the first day of the fiscal year, a company issues an $8,000,000, 11%. rive-year bond hat pays semiannual interest of $440,000 ($8,000,000 11% ), receiving cash of $8,308,869 Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar If an amount box does not require an entry, leave it blank. Discount on Bonds Payable x Feedback Check My Work Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account. The straight-line method of amortization provides equal amounts of amortization over the life of t 4/13201