On January 1, 2012, Fromer issued $3,000,000 of 12-year, 7 percent bonds. Interest is paid semi-annually on June 30 and December 31. The issue price was $2,592,000. 1 Prepare the January 1, 2012, journal entry that records the bond issue. Date Account Description Debit Credit January 1 Cash $2,592,000 Discount on Bonds Payable $408,000 Bonds Payable $3,000,000