On the first day of the fiscal year, a company issues a $316,000, 7%, 10-year bond that pays semiannual interest of $11,060 ($316,000 x 7% x 1/2), receiving cash of $331,800. Journalize the entry to record the first interest payment and amortization of premium using the straight-line method. If an amount box does not require an entry, leave it blank. Interest Expense Discount on Bonds Payable Cash