Issuing bonds at a discount On the first day of the fiscal year, a company issues a $7,400,000, 12%, 10-year bond that pays semiannual interest of $444,000 ($7,400,000 x 12% x 1/2), receiving cash of $6,268,410. Journalize the bond issuance. If an amount box does not require an entry, leave it blank. Cash 444,000 X Discount on Bonds Payable 113,159 X Bonds Payable 500,580 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.