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On the first day of the fiscal year, a company issues an $457,000, 9%, 5-year bond that pays semiannual interest of $20,565 ($457,000 x 9%
On the first day of the fiscal year, a company issues an $457,000, 9%, 5-year bond that pays semiannual interest of $20,565 ($457,000 x 9% x 1/2), receiving cash of $429,600. Journalize the entry for the first interest payment and the amortization of the related bond discount using the straight-line method.
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