On the first day of the fiscal year, a company issues a $5,000,000, 7%, five-year bond that pays semiannual interest of $175,000 ($5,000,000 x 7% x %), receiving cash of $5,400,000. Journalize the bond issuance on January 1. Refer to the Chart of Accounts for exact wording of account titles. 1 DATE 2 Jan. 1 Bonds Payable DESCRIPTION POST REF DEBIT CREDIT ASSETS 135,000.00 Premium on Bonds Payable Cash 175,000.00 40,000.00