On the first day of the fiscal year, a company issues a $684,000, 8%, 10-year bond that pays semiannual interest of $27,360 ($684,000 x 8% x 1/2), receiving cash of $718,200. 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 _________ _________

Bonds Payable _________ _________

Cash __________ __________