On the first day of the fiscal year, a company issues an $757,000, 7%, 5-year bond that pays semiannual interest of $26,495 ($757,000 x 7% x 1/2), receiving cash of $711,600. Journalize the entry for 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. Interest Expense Discount on Bonds Payable Cash