Using the bond from Practice Exercise 12-4A, journalize the first interest payment and the amortization of the

Question:

Using the bond from Practice Exercise 12-4A, journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar.

Practice Exercise 12-4A, On the first day of the fiscal year, a company issues a $4,000,000, 6%, five-year bond that pays semiannual interest of $120,000 ($4,000,000 × 6% × ½), receiving cash of $4,175,041.