On the first day of the fiscal year, a company issues a $970,000, 8%, 10-year bond that pays semiannual interest of $38,800 ($970,000 x 8% x 1/2), receiving cash of $1,018,500. Journalize the entry for the first interest payment and amortization of premium using the straight-line method. If an amount box does not require an entry, leave it blank. Cash Discount on Bonds Payable Bonds Payable