On the first day of the fiscal year, a company issues a $337,000, 7%, 10-year bond that pays semiannual interest of $11,795 ($337,000 x 7% x 1/2), receiving cash of $353,900. 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______ ______