On the first day of the fiscal year, a company issues a $714,000, 10%, 10-year bond that pays semiannual interest of $35,700 ($714,000 x 10% x 1/2), receiving cash of $749,700. Journalize the entry to record the first interest payment and amortization of premium using the straight-line method.

Interest Expense:

Premium on bonds payable:

cash: