On the first day of the fiscal year, a company issues a $721,000, 11%, 10-year bond that pays semiannual interest of $39,655 ($721,000 x 11% x 1/2), receiving cash of $757,100. 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 Premium on Bonds Payable Cash x 39,655