Question 12 2.5 pt= Bonds were issued on January 1 of the current year. Their face value was $10,000,000 and they will mature in 20 years. Interest of 12% is paid semiannually on June 30 and December 31. They were issued at a premium of $250,000. $10M x 12% x 6/12 = $600,000 $250K 40 semiannual periods = $6,250 Using the straight-line method of bond premium amortization, the entry to record the first interest payment on June 30 would consist of a debit to: O Bond Interest Expense, $606,250; a credit to Cash, $606,250. Bond Interest Expense, $606,250; a credit to Premium on Bonds Payable, $6,250; and a credit to Cash, $600,000. Bond Interest Expense, $593,750; a debit to Premium on Bonds Payable, $6,250; and a credit to Cash, $600,000. Bond Interest Expense, $600,000; and a credit to Cash, $600,000.