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    hkenya73 Posts: 1, Reputation: 1
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    Feb 20, 2013, 12:35 PM
    I need help figuring out the steps to journalizing amortization?
    A company issues a $6,000,000, 12%, five-year bond that pays semiannual interest of $360,000 ($6,000,000 × 12% × ½), receiving cash of $6,463,304.

    Journalize the first interest payment and the amortization of the related bond premium.

    I figure out the account titles but I'm stuck on figuring out the premium on bond payable and interest expense.
    This is what I have so far.
    Interest expense(debit)
    Premium on bonds payable (debit)
    Cash (credit) 360000

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