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On the first day of the fiscal year, a company issues an $546,000, 7%, 5-year bond that pays semiannual interest of $19,110 ($546,000 x 7%

On the first day of the fiscal year, a company issues an $546,000, 7%, 5-year bond that pays semiannual interest of $19,110 ($546,000 x 7% x 1/2), receiving cash of $513,200. Journalize the entry for 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.

Account Debit Credit

Bonds Payable, Cash, Discount on Bonds Payable, Interest Expense,Or Premium on Bonds Payable

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Bonds Payable, Discount on Bonds, Payable, Interest Expense, Interest Payable, or Interest Revenue

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Bonds Payable, Cash, Interest Expense, Notes Payable, or Premium on Bonds Payable

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