Issuing Bonds at a Premium

On the first day of the fiscal year, a company issues an $8,500,000, 8%, 5-year bond that pays semiannual interest of $340,000 ($8,500,000 8% ), receiving cash of $9,225,068.

Journalize the bond issuance. If an amount box does not require an entry, leave it blank.

Accounts Payable Bonds Payable Cash Discount on Bonds Payable Interest Expense Interest Payable