On the first day of the fiscal year, a company issues a $636,000, 9%, 10-year bond that pays semiannual interest of $28,620 ($636,000 x 9% x 1/2), receiving cash of $667,800. 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 1,590 38.620