On the first day of the fiscal year, a company issues an $789,000, 9%, five-year bond that pays semiannual interest of $35,505 ($789,000 x 9% x 1/2), receiving cash of $741,700. Journalize the entry to record the first interest payment and the amortization of the related bond discount using the straight-line method.

If an amount box does not require an entry, leave it blank.