17. On August 1, Clayton Co. issued $1,300,000 of 20-year, 9% bonds, dated August 1, for $1,225,000. Interest is payable semiannually on February 1 and August 1. Present the entries to record the following transactions for the current year:

1. Issuance of the bonds.
2. Accrual of interest and amortization of bond discount for the year, on December 31, using the straight-line method. Round to the nearest dollar when necessary.

Cash	1,225,000
Discounts on Bonds Payable	75,000
Bonds Payable		1,300,000
Interest Expense	48,750
Interest Payable		48,750
Interest Expense	1,563
Discount on Bonds Payable		1,563

Please show the math to arrive at this answer. Thank you!