On the first day of the fiscal year, a company issues a $638,000, 12%, 10-year bond that pays semiannual interest of $38,280 ($638,000 x 12% x 1/2) receiving cash of $669,900. Journalize the entry for 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