Fajitas Corporation wholesales oil and grease products to equipment manufacturers. On March 1, 2006, Fajitas Corporation issued $10,000,000 of five-year, 11% bonds. The bonds were issued for $10,386,057 to yield an effective interest rate of 10%. Interest is payable semiannually on March 1 and September 1. Record the entries for the following:
a. Sale of bonds on March 1, 2006.
b. First interest payment on September 1, 2006, and amortization of bond premium for six months, using the straight-line method. Round to the nearest dollar.