On the first day of the fiscal year, a company issues an $445,000, 9%, 5-year bond that pays semiannual interest of $20,025 ($445,000 x 9% x 1/2), receiving cash of $418,300. Journalize the entry for 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. Interest Expense Discount on Bonds Payable Cash