On the first day of the fiscal year, a company issues an $558,000, 9%, 5-year bond that pays semiannual interest of $25,110 ($558,000 x 9% x 1/2), receiving cash of $524,500. 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.

	Interest Expense	__________	__________
	Discount on Bonds Payable	__________	___________
	Cash	_________	__________