The county issued $6,000,000, 4 percent bonds, with interest payable semiannually on June 30 and December 31. The bonds sold for 101 on July 30, 2016. Proceeds from the bonds were to be used for construction of the library, with all interest and premiums received to be used to service the debt issue. Assume the premium and interest are recorded directly in the debt service fund.

Below is my Governmental Activities journal entry, which the program says is incorrect. Apparently, interest payable is supposed to be a part of this journal entry. Can anyone tell me what the correct journal entry should be?

Cash 6,060,000

Bonds payable 6,000,000

Premium on Bonds Payable 60,000