April 7, 5,000 April 1 and 7. 7. On the first day of the fiscal year, a company issues a $500,000, 8%, 10-year bond that pays semi-annual interest of $20,000 ($500,000 x 8% x ), receiving cash of $437,740. (6 points) (a) (b) Journalize the entry to record the issuance of the bonds. Journalize the entry to record the first interest payment and the amortization of the related bond discount using the straight-line method.. 8. A $525,000 bond issue on which there is an unamortized discount of $40,000 is redeemed for $475,000. Journalize the redemption of the bonds. (4 points) EXTRA CREDIT (6 points) (a) Prepare the journal entry to issue $100,000 bonds which sold for $94,000. Prepare the journal entry to issue $100,000 bonds which sold for $104,000. (b) Page 9