Issuing Bands at a Premium On the first day of the fiscal year, a company issues a $2,500,000, 7%, 4-year bond that pays semiannual interest of $87,500 ($2,500,000 x 7% x 5) receiving cash of $2,774,703. Journalize the bond issuance. If an amount box does not require an entry, leave it blank. Cash Premium on Bonds Payable Bonds Payable Feedback 2,774,703 0 2,500,000