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On the first day of the fiscal year, a company issues an $818,000, 10%, 5-year bond that pays semiannual interest of $40,900 ($818,000 x 10% x 1/2), receiving cash of $768,900. 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.