On the first day of the fiscal year, a company issues a $737,000, 11%, 10-year bond that pays semiannual interest of $40,535 ($737,000 x 11% x 1/2), receiving cash of $773,900. Journalize the entry for 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 40,535 Premium on Bonds Payable 737,000 Cash 40,535