On the first day of the fiscal year, a company issues a $749,000, 7%, five-year bond that pays semi-annual interest of $26,215 ($749,000 x 7% x 1/2), receiving cash of $704,100. Journalize the entry to record the first interest payment and the amortization of the related bond discount for the six-month period using the straight-line method.

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	Bonds Payable Cash Discount on Bonds Payable Interest Expense Premium on Bonds Payable Correct 2	Correct 3	Correct 4
	Bonds Payable Discount on Bonds Payable Interest Expense Interest Payable Interest Revenue Correct 5	Correct 6	Correct 7
	Bonds Payable Cash Interest Expense Notes Payable Premium on Bonds Payable Correct 8	Correct 9	Correct 10