On the 1st day of the fiscal year a company issues a $380,000 7% 5 year bond that pays semi annual interest of 13,300 (380,000 x 7% x 1/2) receiving cash of 357,200.

Journalize the entry to record the 1st interest payment in the amortization of the related bond discount using the straight line method refer to chart of accounts for exact wording of the account titles

on REVENUE 410 Sales 610 Interest Revenue 611 Gain on Redemption of Bonds $35 Ins Chart of Accounts ASSETS 110 Cash 111 Petty Cash 112 Accounts Receivable 113 Allowance for Doubtful Accounts 114 Notes Receivable 115 Interest Receivable 121 Inventory 122 Supplies 131 Prepaid Insurance 140 Land 151 Building 152 Accumulated Depreciation-Building 153 Equipment 154 Accumulated Depreciation-Equipment EXPENSES 510 Cost of Goods Sold 511 Bad Debt Expense 512 Credit Card Expense 513 Cash Short and Over 521 Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Repairs Expense 534 Rent Expense 535 Insurance Expense 536 Supplies Expense LIABILITIES Chart of Accounts ceiving a LIABILMES 210 Accounts Payable 221 Salaries Payable 231 Sales Tax Payable 241 Notes Payable 242 Interest Payable 251 Bonds Payable 252 Discount on Bonds Payable 253 Premium on Bonds Payable 535 insurance Experise 536 Supplies Expense 551 Depreciation Expense-Building 552 Depreciation Expense-Equipment 590 Miscellaneous Expense 710 Interest Expense 711 Loss on Redemption of Bonds EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends