On the first day of the fiscal year, Lisbon Co. issued $1,000,000 of 10-year, 7% bonds for $1,050,000, with interest payable semiannually. Orange Inc. purchased the bonds on the issue date for the issue price. If Lisbon uses the straight- line method for amortizing the premium, the journal entry to record the first semiannual interest payment by Lisbon Co would include a debit to Interest Payable for $30,000 Cash for $70,000 Interest Expense for $32,500 Premium on Bonds Payable for $5,500