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On the first day of the fiscal year, a company issues a $500,000, 5%, 10-year bond that pays semiannual interest of $12,500 ($500,000 5% 1/2),

On the first day of the fiscal year, a company issues a $500,000, 5%, 10-year bond that pays semiannual interest of $12,500 ($500,000 5% 1/2), receiving cash of $458,417. Journalize the entry to record the first interest payment and the amortization of the related bond discount using the straight-line method.

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