On January 1, Grissom Inc. issued 10-year, 4% bonds payable with a par value of $500,000, and received $490,000 in cash proceeds. The market rate of interest at the date of issuance was 4.5%. The bonds pay interest semiannually on June 30 and Dec 31. The issuer uses the straight-line method for amortization. Prepare the issuer's journal entry to record the first semiannual interest payment on July 1.Hint: Your debit to bond interest expense should be the sum of cash interest paid plus the amount of the discount amortized for the six-month period.

Date Account Name Debit Credit