On the first day of the fiscal year, a company issues an $894,000, 10%, 5-year bond that pays semiannual interest of $44,700 ($894,000 x 10% x 1/2), receiving cash of $840,400. Journalize the entry to record the first interest payment and the amortization of the related bond discount/premium using the straight-line method.

If an amount box does not require an entry, leave it blank or enter "0".

	Bonds PayableCashDiscount on Bonds PayableInterest ExpensePremium on Bonds PayableInterest Expense	Interest Expense	Interest Expense
	Bonds PayableDiscount on Bonds PayableInterest ExpenseInterest PayableInterest RevenueDiscount on Bonds Payable	Discount on Bonds Payable	Discount on Bonds Payable
	Bonds PayableCashInterest ExpenseNotes PayablePremium on Bonds Payable