Premium amortization

On the first day of the fiscal year, a company issues a $6,000,000, 6%, 5-year bond that pays semiannual interest of $180,000 ($6,000,000 6% ), receiving cash of $6,300,000.

Using straight-line amortization, journalize the first interest payment and the amortization of the related bond premium. If an amount box does not require an entry, leave it blank.

	Accounts PayableCashDiscount on Bonds PayableInterest ExpenseInterest PayableInterest Expense	Interest Expense	Interest Expense
	Accounts PayableBonds PayableDiscount on Bonds PayablePremium on Bonds PayableInterest PayablePremium on Bonds Payable	Premium on Bonds Payable	Premium on Bonds Payable
	Accounts PayableBonds PayableCashPremium on Bonds PayableInterest ExpenseCash