On the first day of the fiscal year, a company issues an $678,000, 8%, 5-year bond that pays semiannual interest of $27,120 ($678,000 x 8% x 1/2), receiving cash of $637,300. Journalize the entry to record 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	?	blank
	Discount on Bonds Payable	blank	?
	Cash	blank	27120