Discount Amortization

On the first day of the fiscal year, a company issues a $7,000,000, 7%, 7-year bond that pays semiannual interest of $245,000 ($7,000,000 7% ), receiving cash of $5,960,643.

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.

	Interest Expense	fill in the blank 2	fill in the blank 3
	Discount on Bonds Payable	fill in the blank 5	fill in the blank 6
	Cash	fill in the blank 8	fill in the blank 9