Mastery Problem: Liabilities: Bonds Payable SpringFit Corporation You are an accounting intern working for SpringFit Corporation. You have recently been assigned to help one of the acco issued by SpringFit Corporation. Your first task is to review the previous year's journal entries, shown as follows: Journal Entries, Year 1 Journal Date Description Debit Credit Jan. 1 Cash 1,062,060 Premium on Bonds Payable Bonds Payable 62,060 1,000,000 Jun. 30 Interest Expense 19,397 Premium on Bonds Payable 3,103 Cash 22,500 Jul. 1 Cash 1,729,164 Discount on Bonds Payable 70,836 Bonds Payable 1,800.000 Dec. 31 Interest Expense 19:397 Premium on Bonds Payable 3,103 Cash 22.500 31 Interest Expense 37.403 Discount on Bonds Payable 5.903 Cash 31,500 31 Retained Earnings 76.197 Interest Expense 76.197 Bonds Payable