Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $1,900,000, 9%, 7-year bond that pays semiannual Interest of $85,500 ($1,900,000 x 9% x V), receiving cash of $1,635,093. Journalize the bond issuance. If an amount box does not require an entry, leave it blank. Interest Expense Discount on Bonds Payable Cash 85,500