Southwest Corporation issued bonds with the following details:

Face value: $600,000

Interest: 9 percent per year payable each December 31

Terms: Bonds dated January 1, 2015, due five years from that date

The annual accounting period ends December 31. The bonds were issued at 104 on January 1, 2015, when the market interest rate was 8 percent. Assume the company uses effective-interest amortization and adjusts for any rounding errors when recording interest expense in the final year.

3. Prepare the journal entries to record the payment of interest on December 31, 2015 and 2016. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to the nearest whole dollar.) No Credit 1 Date General Journal December 31, 2016 Interest Expense Premium on Bonds Payable Debit 49,200 4,800 X Cash 54,000 December 31, 2016 Interest Expense 49,200 X 4,800 X Premium on Bonds Payable Cash 54,000