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On the first day of the fiscal year, a company issues a $589,000, 8%, 10-year bond that pays semiannual interest of $23,560 ($589,000 x 8%

On the first day of the fiscal year, a company issues a $589,000, 8%, 10-year bond that pays semiannual interest of $23,560 ($589,000 x 8% x 1/2), receiving cash of $618,500. Journalize the entry to record the first interest payment and amortization of premium using the straight-line method.

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