On the first day of the fiscal year, a company issues an $659,000, 7%, 5-year bond that pays semiannual interest of $23,065 ($659,000 x 7% x 1/2), receiving cash of $619,500. 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