Kenton Corporation issued $556,000 of 30-year,8 percent bonds at 106 on one of its semi-annual interest dates.The straight-line method of amortization is to be used.The entry to record the bond interest expense on the next interest payment date is:

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The bond premium is amortized over the bond's life. The premium is $33,360 ($556,000 * 6%). Over 60 periods (30 years semi-annual), the amortization per period is $556. The interest expense is the cash interest ($22,240) minus the amortization ($556), which equals $21,684.

Kenton Corporation Issued $556,000 of 30-Year,8 Percent Bonds at 106