Discount Amortization

On the first day of the fiscal year, a company issues a $7,900,000, 7%, 8-year bond that pays semiannual interest of $276,500 ($7,900,000 7% ), receiving cash of $6,615,724.

Journalize 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.

blank	Accounts PayableBonds PayableDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds PayableInterest Expense	Interest Expense	Interest Expense
	Accounts PayableBonds PayableDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds PayableDiscount on Bonds Payable	Discount on Bonds Payable	Discount on Bonds Payable
	Accounts PayableBonds PayableCashInterest ExpenseInterest PayablePremium on Bonds PayableCash	Cash	Cash