Issuing bonds at face amount Obj. 2 On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $3,000,000, 8%, 10-year bond that pays semiannual interest of $120,000 ($3,000,000 3 8% 3 ½ year), receiving cash of $3,000,000. Journalize the entries to record

(a) the issuance of the bonds,

(b) the first interest payment on June 30, and

(c) the payment of the principal on the maturity date.

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