Discount Amortization On the first day of the fiscal year, a company issues a $7,700,000, 10%, 5-year bond that pays semiannual interest of $385,000 ($7,700,000 * 10% x W), receiving cash of $7,409,801. Joumalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank Interest Expense 429,150.20 x Discount on Bonds Payable 44.159.20 X 185,000 Frek Bonds Payable in always recorded at tace value. Any difference in intre price is reflected in a premium or discount account. The straight-line method of amortization provides equal amounts of amortion over the line of the bond