RKO Company sold bonds with a face value of $850,000 for $955,566. The bonds have a coupon rate of 8 percent, mature in 8 years, and pay interest annually every December 31. All of the bonds were sold on January 1 of this year. Using a premium account, record the sale of the bonds on January 1 and the payment of interest on December 31 of this year. RKO uses the effective-interest amortization method. Assume an annual market rate of interest of 6 percent. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to nearest whole dollar amounts.) Answer is complete but not entirely correct. No Date General Journal Debit Credit 1 January 01 Cash 955,566 Bonds payable Premium on bonds payable 850,000 105,566 2 December 31 Interest expense 66,890 Premium on bonds payable OOO 1,110 x Cash 68,000