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

Question:

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

Practice Exercise 12-4B, On the first day of the fiscal year, a company issues an $8,000,000, 11%, five-year bond that pays semiannual interest of $440,000 ($8,000,000 × 11% × ½), receiving cash of $8,308,869.