IssuingBondsat aDiscount:

On the first day of the fiscal year, a company issues a $3,500,000, 6% five-year bond that pays semiannual interest of $105,000 ($3,500,000 6% ), receiving cash of $3,350,000.

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

Cash ______________ ______________

Discount on Bonds Payable ______________ ______________

Bonds Payable ______________ ______________