Saberhagen Company sold $3,700,000,6%, 10-year bonds on January 1, 2017. The bonds were dated January 1, 2017 and pay interest annually on January 1. Saberhagen Company uses the straight-line method to amortize bond premium or discount.

Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2017, assuming that the bonds sold at105

dr cr

January 1

cash 3885000

bonds payable 3700000

premium on bonds payable 185000

dec 31st

interest expense jQuery20008176624780088309_1510103954038?

premium on bonds payable ???

interest payable ???