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Issuing Bonds at a Discount

On the first day of the fiscal year, a company issues a $2,800,000, 10%, 5-year bond that pays semiannual interest of $140,000 ($2,800,000 10% ), receiving cash of $2,593,917.

Journalize the entry to record the issuance of the bonds. If an amount box does not require an entry, leave it blank.

blank	Accounts PayableBonds PayableCashInterest ExpensePremium on Bonds PayableCash	Cash	Cash
	Accounts PayableBonds PayableDiscount on Bonds PayableInterest ExpensePremium on Bonds PayableDiscount on Bonds Payable	Discount on Bonds Payable	Discount on Bonds Payable
	Accounts PayableBonds PayableCashInterest ExpensePremium on Bonds PayableBonds Payable	Bonds Payable	Bonds Payable