On the first day of the fiscal year, a company issues a $980,000, 8%, 5-year bond that pays semiannual interest of $39,200 ($980,000 x 8% 1/2), receiving cash of $884,172. Journalize the entry to record the issuance of the bonds.

If an amount box does not require an entry, leave it blank.

Premium on Bonds Payable ________ ________

Interest Expense _________ ________

Cash _________ ________

On the first day of the fiscal year, a company issues a $764,000, 7%, 10-year bond that pays semiannual interest of $26,740 ($764,000 x 7% x 1/2), receiving cash of $802,200. 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.

Premium on Bonds Payable ________ ________

Interest Expense _________ ________

Cash _________ ________