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On the first day of the fiscal year, a company issues an $515,000, 6%, five-year bond that pays semiannual interest of $15,450 ($515,000 x 6%
On the first day of the fiscal year, a company issues an $515,000, 6%, five-year bond that pays semiannual interest of $15,450 ($515,000 x 6% x 1/2), receiving cash of $484,100. Journalize the entry to record the first interest payment and the amortization of the related bond discount using the straight-line method.
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