Premium Amortization

On the first day of the fiscal year, a company issues a $7,000,000, 8%, 10-year bond that pays semiannual interest of $280,000 ($7,000,000 8% ), receiving cash of $8,041,423.

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.

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