Discount amortization

Instructions

On the first day of the fiscal year, a company issues a $$1,000,000,8\%,$ five$-$year bond that pays semiannual interest of $$40,000($$$1,000,0008\%\frac{1}{2}),$ receiving cash of $$951,590.$

Journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. Refer to the Chart of Accounts for exact wording of account titles.X