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On the first day of the fiscal year, a company issues a $827,000, 11%, 10-year bond that pays semiannual interest of $45,485 ($827,000 x 11%
On the first day of the fiscal year, a company issues a $827,000, 11%, 10-year bond that pays semiannual interest of $45,485 ($827,000 x 11% x 1/2), receiving cash of $868,400. 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 V Premium on Bonds Payable Cash
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