Issuing Bonds at a Discount

On the first day of the fiscal year, a company issues a $3,300,000, 7%, 4-year bond that pays semiannual interest of $115,500 ($3,300,000 7% ), receiving cash of $3,188,911.

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

	Accounts PayableBonds PayableCashInterest ExpenseInterest PayablePremium on Bonds PayableInterest Expense	Interest Expense	Interest Expense
	Accounts PayableBonds PayableDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds PayablePremium on Bonds Payable	Premium on Bonds Payable	Premium on Bonds Payable
	Accounts PayableBonds PayableCashInterest ExpenseInterest PayablePremium on Bonds PayableBonds Payable	Bonds Payable	Bonds Payable