Issuing bonds at a discount

On the first day of the fiscal year, a company issues a $4,200,000, 8%, 4-year bond that pays semiannual interest of $168,000 ($4,200,000 8% ), receiving cash of $3,800,922.

Journalize the bond issuance. If an amount box does not require an entry, leave it blank.

	Account	Debit	Credit
	Bonds PayableCashInterest ExpenseInterest PayablePremium on Bonds PayableCash	Cash	Cash
	Bonds PayableDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds PayableDiscount on Bonds Payable	Discount on Bonds Payable	Discount on Bonds Payable
	Bonds PayableCashDiscount on Bonds PayableInterest PayablePremium on Bonds Payable