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On the first day of the fiscal year, a company issues an $648,000, 10%, 5-year bond that pays semiannual interest of $32,400 ($648,000 x 10%

On the first day of the fiscal year, a company issues an $648,000, 10%, 5-year bond that pays semiannual interest of $32,400 ($648,000 x 10% x 1/2), receiving cash of $609,100. 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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