Discount Amortization

On the first day of the fiscal year, a company issues a $7,100,000, 9%, 7-year bond that pays semiannual interest of $319,500 ($7,100,000 9% ), receiving cash of $6,110,085.

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.

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