On the first day of the fiscal year, a company issues a $877,000, 7%, 10-year bond that pays semiannual interest of $30,695 ($877,000 x 7% x 1/2), receiving cash of $920,900. 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.

	Bonds PayableCashDiscount on Bonds PayableInterest ExpenseInterest Payable	- Select -	- Select -
	Bonds PayableCashInterest RevenueInterest PayablePremium on Bonds Payable	- Select -	- Select -
	Bonds PayableCashDiscount on Bonds PayableInterest ExpensePremium on Bonds Payable	- Select -	- Select -