Journalize the bond issuance

Issuing Bonds at a Premium On the first day of the fiscal year, a company issues a $5,000,000, 7%, five-year bond that pays semiannual interest of $175,000 ($5,000,000 x 7% X 1/2), receiving cash of $5,400,000. Journalize the bond issuance. If an amount box does not require an entry, leave it blank. 135,000 Interest Expense X Premium on Bonds Payable Cash X 40,000 X 175,000