Presented below is the partial bond premium amortization schedule for Carla Vista Corp. Carla Vista uses the effective-interest method of amortization.

Interest Periods		Interest Payment		Interest Expense		Premium Amortization			Bond Amortized Cost
Issue date									$122,390
1		$7,980		$7,343		$637			121,753
2		7,980		7,305		675			121,078

Prepare the journal entry to record the payment of interest and the premium amortization at the end of the first two periods. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)