On the first day of the fiscal year, a company issues a $357,000, 7%, 10-year bond that pays semiannual interest of $12,495 ($357,000 x 7% x 1/2), receiving cash of $374,900. 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.