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On the first day of the fiscal year, a company issues an $866,000, 9%, 5-year...

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Question

Accounting

On the first day of the fiscal year, a company issues an $866,000, 9%, 5-year bond that pays semiannual interest of $38,970 ($866,000 9% 1/2), receiving cash of $814,040.

Required:
Journalize the entry to record the first interest payment and the amortization of the related bond discount using the straight-line method. Refer to the Chart of Accounts for exact wording of account titles.

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