Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $6,300,000, 11%, 5-year bond that pays semiannual interest of $346,500 ($6,300,000 $6,068,157 11% x ), receiving cash of Journalize the bond issuance. If an amount box does not require an entry, leave it blank. Interest Expense Accounts Payable Bonds Payable Discount on Bonds Payable Interest Expense Interest Payable Premium on Bonds Payable