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On the first day of the fiscal year, a company issues an $852,000, 10%, 5-year bond that pays semiannual interest of $42,600 ($852,000 x 10%
On the first day of the fiscal year, a company issues an $852,000, 10%, 5-year bond that pays semiannual interest of $42,600 ($852,000 x 10% x 1/2), receiving cash of $800,900. Journalize the entry to record the first interest payment and the amortization of the related bond discount/premium using the straight-line method.
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