On the first day of the fiscal year, a company issues an $386,000, 7%, five-year bond that pays semiannual interest of $13,510 ($386,000 x 7% x 1/2), receiving cash of $362,800. 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.