Bond Discount, Entries for Bonds Payable Transactions On July 1, Year 1, Livingston Corporation, a wholesaler of manufacturing equipment, issued $1,400,000 of 5-year, 11% bonds at a market (effective) interest rate of 12%, receiving cash of $1,348,480. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1. For a compound transaction, if an amount box does not require an entry, leave it blank.. Cash Discount on Bonds Payable Bonds Payable 1.348,480 51.520 1,400,000