Issuing Bonds at a Premium

On the first day of the fiscal year, a company issues a $$1,200,000,9\%,4-$year bond that pays semiannual interest of $$54,000($ $$1,200,0009\%\frac{1}{2}),$ receiving cash of $$1,240,396.$

Journalize the bond issuance. If an amount box does not require an entry, leave it blank.