Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $1,000,000, 7%, 5-year bond that pays semiannual interest of $35,000 ($1,000,000 x 7% x 1/2), receiving cash of $920,873. Journalize the entry to record the issuance of the bonds. If an amount box does not require an entry, leave it blank.