Issuing bonds at a premium

Issuing Bonds at a Premium On the first day of the fiscal year, a company issues an $7,100,000, 12%, 9-year bond that pays semiannual interest of $426,000 ($7,100,000 x 12% x V), receiving cash of $8,395,040. Journalize the bond issuance. If an amount box does not require an entry, leave it blank. Cash 8,395,040 Premium on Bonds Payable Bonds Payable