Premium Amortization

Premium Amortization On the first day of the fiscal year, a company issues a $7,400,000, 12%, 5-year bond that pays semiannual interest of $444,000 ($7,400,000 x 12% x 1/2), receiving cash of $7,971,409. Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.