Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $2,500,000, 4%, five-year bond that pays semiannual interest of $50,000 ($2,500,000 x 4% x V), receiving cash of $2,400,000. Journalize the bond issuance. If an amount box does not require an entry, leave it blank. Accounts Payable Bonds Payable Cash Interest Expense Interest Payable Premium on Bonds Payable