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Discount Amortization On the first day of the fiscal year, a company issues a $4,300,000, 6%, 9-year bond that pays semiannual interest of $129,000 ($4,300,000

Discount Amortization

On the first day of the fiscal year, a company issues a $4,300,000, 6%, 9-year bond that pays semiannual interest of $129,000 ($4,300,000 6% ), receiving cash of $3,515,682.

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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Interest Expense 784,318 Discount on Bonds 655,318 Cash 129,000

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