On the first day of the fiscal year, a company issues an $704,000, 6%, 5-year bond that pays semiannual interest of $21,120 ($704,000 x 6% x 1/2), receiving cash of $661,800. Journalize the entry to record the first interest payment and the amortization of the related bond discount using the straight-line method.

If an amount box does not require an entry, leave it blank.