Issuing Bonds at a Premium On the first day of the fiscal year, a company issues an $2,500,000, 10%, 4-year bond that pays semiannual interest of $125,000 ($2,500,000 10% x 1/2), receiving cash of $2,757,774. Journalize the bond issuance. If an amount box does not require an entry, leave it blank. Cash 2,250,000 X Discount on Bonds Payable x 250,000 X Bonds Payable 2,500,000