On the first day of the fiscal year, a company issues a $933,000, 12%, 10-year bond that pays semiannual interest of $55,980 ($933,000 x 12% x 1/2), receiving cash of $979,700. Journalize the entry to record the first interest payment and amortization of premium using the straight-line method.

If an amount box does not require an entry, leave it blank.

Interest Expense

Premium on Bonds Payable

Cash