Issuing Bonds at a Face Amount On January 1, the first day of the fiscal year, a company issues a $400,000, 10%, 10-year bond that pays semiannual interest of $20,000 ($400,000 X 10% x year), receiving cash of $400,000 (a) Journalize the entry to record the issuance of the bonds. Cash Bonds Payable 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. (6) Journalize the entry to record the first interest payment on June 30. Interest Expense Cash Check My Work Partially correct (c) Journalize the entry to record the payment of the principal on the maturity date. Bonds Payable Cash