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On the first day of the fiscal year, a company issues an $322,000, 7%, five-year bond that pays semiannual interest of $11,270 ($322,000 x 7%
On the first day of the fiscal year, a company issues an $322,000, 7%, five-year bond that pays semiannual interest of $11,270 ($322,000 x 7% x 1/2), receiving cash of $302,700. Journalize the entry to record the first interest payment and the amortization of the related bond discount using the straight-line method.
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