Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $3,500,000, 6% five-year bond that pays semiannual interest of $105,000 ($3,500,000 x 6% x 42), receiving cash of $3,350,000. Journalize the bond issuance. If an amount box does not require an entry, leave it blank. Cash 0 0 Discount on Bonds Payable Bonds Payable 0 Feedback Check My Work Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account