[ Para . 6 - 2 - 3| The July 1 , 2017 , interest payment was made in the amount of $ 40 , 000 .( Note : Since you credited Expense_ Interest on Long - Term Debt for $ 28 , 000 in 5 - 2 - 7 inthe governmental activities general journal you can record the full July 1 , 2017 , interestpayment as a debit to Interest Expense , less amortization of the premium . )Required : Record this transaction in both the debt service fund and the governmentalactivities general journals . For the entry in the governmental activities journal , assumethat the appropriate amount of amortization of the Premium on Deferred Serial BondsPayable for the period the bonds have been outstanding ( May 6 to July 1 ) is $585 . ( Note :"Although premiums and discounts on bonds issued are not amortized in a debt servicefund , they should be amortized at the government - wide level since the accrual basis ofaccounting is used at that level . )