Premium Amortization

On the first day of the fiscal year, a company issues a $4,700,000, 8%, 7-year bond that pays semiannual interest of $188,000 ($4,700,000 8% ), receiving cash of $5,524,211.

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.

	Interest Expense
	Premium on Bonds Payable
	Cash

Redemption of Bonds Payable

A $950,000 bond issue on which there is an unamortized premium of $70,000 is redeemed for $780,000.

Journalize the redemption of the bonds. If an amount box does not require an entry, leave it blank.