On the first day of the fiscal year, a company issues a $605,000, 7%, 10-year bond that pays semiannual interest of $21,175 ($605,000 7% 1/2), receiving cash of $635,250.

Instruction On the first day of the fiscal year, a company issues a $605,000, 7%, 10-year bond that pays semiannual interest of $21.175 ($605,000 x 7% x 1/2), receiving cash of $635,250 Required: Journalize the entry to record the first interest payment and amortization of premium using the straight-line method. Refer to the Chart of Accounts for exact wording of account titles General Journal Shaded cells have 1 Journalize the entry to record the first interest payment and amortization of premium using the straight-line method on December 31. Refer to the Chart of Accounts for exact wording of account titles How does grading work? PAGE 1 JOURNAL Score: 26/37 DATE POST. REF DEBIT CREDIT Interest Expense Premium on Bonds Payable 0 Cash 21,175.00