eBook Show Me How Print Item Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $1,300,000, 12%, 7-year bond that pays semiannual interest of $78,000 ($1,300,000 x 12% * 12), receiving cash of $1,241,409. Journalize the bond issuance. If an amount box does not require an entry, leave it blank. Interest Expense X 0 Discount on Bonds Payable 0 X Cash X 0 78,000 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