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On the first day of the fiscal year, a company issues a $759,000, 7%, 10-year bond that pays semiannual interest of $26,565 ($759,000 x 7%

On the first day of the fiscal year, a company issues a $759,000, 7%, 10-year bond that pays semiannual interest of $26,565 ($759,000 x 7% x 1/2), receiving cash of $797,000. Journalize the entry to record the first interes payment and amortization of discount/premium using the straight-line method.

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