Issuing Bonds at a Premium On the first day of the fiscal year, a company issues a $6,800,000, 12%, 10-year bond that pays semiannual interest of $408,000 ($6,800,000 x 12% % %), receiving cash of $7,206,311. Journalize the bond issuance. If an amount box does not require an entry, leave it blank. Cash 6,115.982 x Discount on Bonds Payable x 6 34.013 Bonds Payable 6,800,000 Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account