RKO Company sold bonds with a face value of $853,000 for $893,659. The bonds have a coupon rate of 8 percent, mature in 6 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 7 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.)

(General Journal Options:

• No journal entry required
• Accounts payable
• Bonds payable
• Cash
• Discount on bonds payable
• Interest expense
• Interest revenue
• Loss on bond call
• Notes payable
• Premium on bonds payable
• Rent revenue)