On the first day of the fiscal year, a company issues an $861,000, 10%, 5-year bond that pays semiannual interest of $43,050 ($861,000 x 10% x 1/2), receiving cash of $809,300. Journalize the entry to record the first interest payment and the amortization of the related bond discount/premium using the straight-line method.

On the first day of the fiscal year, a company issues an $861,000, 10%, 5-year bond that pays semiannual interest of $43,050 ($861,000 x 10% x 1/2), receiving cash of $809,300. 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 Payable Cash Discount on Bonds Payable Interest Expense Premium on Bonds Payable