Premlum Amortization On the first day of the fiscal year; a company issues a $4,800,000,7%,8-year bond that pays semiannual interest of $168,000 ($4,800,0007%1/2), receiving cash of $5,426,640 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. Feedtack T CheckMy Wark Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account. The straight-ine method of amortization provides equal amounts of amortization over the life of the bond