On the first day of the fiscal year, a company issues an $423,000, 7%, five-year bond that pays semiannual interest of $14,805 ($423,000 x 7% x 1/2), receiving cash of $397,600. 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.