On the first day of the fiscal year, a company issues a $636,000, 12%, 10-year bond that pays semiannual interest of $38,160 ($636,000 x 12% 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.

Cash _______ ________

Bond Payable _______ ________

Premium On Bonds Payable ________ ________