Issuing bonds at a premium On the first day of the fiscal year, a company issues a $6,700,000, 12%, 9-year bond that pays semiannual interest of $402,000 ($6,700,000 x 12% x 12), receiving cash of $7,483,202. Journalize the bond issuance. If an amount box does not require an entry, leave it blank. 000 000

Issuing bonds at a premium On the first day of the fiscal year, a company issues a $6,700,000, 12%, 9-year bond that pays semiannual interest of $402,000 ($6,700,000 x 12 % x 12), receiving cash of $7,483,202. Journalize the bond issuance. If an amount box does not require an entry, leave it blank. Cash Premium on Bonds Payable Bonds Payable 7,483,202 x Incorrect 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.