On the first day of the fiscal year, a company issues a $500,000, 11%, 10-year bond that pays semiannual interest of $27,500 ($500,000 x 11% x 1/2), receiving cash of $525,000. 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 27,500