On the first day of the fiscal year, a company issues a $2,000,000, 10%, 9-year bond that pays semiannual interest of $100,000 ($2,000,000 10% ), receiving cash of $1,687,026.

Using straight-line amortization, journalize the first interest payment and the amortization of the related bond discount.

Interest Expense $ $

Discount on Bonds Payable $ $

Cash $ $