cengagenow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession.. A G R eBook Show Me How Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $4,000,000, 8%, 10-year bond that pays semiannual interest of $160,000 ($4,000,000 x 8% x 1/2), receiving cash of $3,501,509. Journalize the bond issuance. If an amount box does not require an entry, leave it blank. Cash 3,501,509 Discount on Bonds Payable 498,491 Bonds Payable X Feedback Check My Work Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account. Learning Objective 2