On the first day of the fiscal year, a company issues an $779,000, 7%, 5-year bond that pays semiannual interest of $27,265 ($779,000 x 7% x 1/2), receiving cash of $732,300. 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 PayableCashDiscount on Bonds PayableInterest ExpensePremium on Bonds Payable	- Select -	- Select -
	Bonds PayableDiscount on Bonds PayableInterest ExpenseInterest PayableInterest Revenue	- Select -	- Select -
	Bonds PayableCashInterest ExpenseNotes PayablePremium on Bonds Payable	- Select -	- Select -