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On the first day of the fiscal year, a company issues a $658,000, 12%, 10-year bond that pays semiannual interest of $39,480 ($658,000 x 12%

On the first day of the fiscal year, a company issues a $658,000, 12%, 10-year bond that pays semiannual interest of $39,480 ($658,000 x 12% x 1/2), receiving cash of $690,900. Journalize the entry to record the first interest payment and amortization of discount/premium using the straight-line method.

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