On the first day of the fiscal year, a company issues an $650,000, 10%, 5-year bond that pays semiannual interest of $32,500 ($650,000 x 10% x 1/2), receiving cash of $611,000. 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".

Interest Expense ____________ ___________

Discount on bonds payable ____________ ____________

Cash ____________ ____________