Issuing Bonds at a Discount

On the first day of the fiscal year, a company issues a $6,400,000, 12%, 9-year bond that pays semiannual interest of $384,000 ($6,400,000 12% ), receiving cash of $5,756,219.

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

Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $6,400,000, 12%, 9-year bond that pays semiannual interest of $384,000 ($6,400,000 x 12% 12), receiving cash of $5,756,219. 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