3.DiscountAmortization

On the first day of the fiscal year, a company issues a $3,500,000, 6%, five-yearbondthat pays semiannual interest of $105,000 ($3,500,000 6% ), receiving cash of $3,350,000.

Journalize the first interest payment and the amortization of the related bond discount. If an amount box does not require an entry, leave it blank.

Accounts Title Debit Credit

______ $___ $___

______ $___ $___

______ $___ $___