Issuing Bonds at Face Amount On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $5,000,000, 6%, 10-year bond that pays semiannual interest of $150,000 ($5,000,000 x 6% x V2 year), receiving cash of $5,000,000 (a) Journalize the entry to record the issuance of the bonds. Accounts Payable Cash o record the first interest payment on June 30. Interest Expense Interest Payable Premium on Bonds Payable (c) Journalize the entry to record the payment of the principal on the maturity date