Discount Amortization On the first day of the fiscal year, a company issues a $5,500,000, 10%, 7-year bond that pays semiannual interest of $275,000 ($5,500,000 10% x 12), receiving cash of $5,236,286. 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 550,000 Discount on Bonds Payable 18,837 Cash 531,163