Sheridan Corp. issues bonds with a face value of $390 million that mature in 14 years. The bonds carry a 4.0% interest rate and are sold at 94.848 to yield 4.5% They pay interest semi-annually. (a1) Your answer is correct. Calculate the proceeds on issuance of the bonds. Proceeds on issuance of the bonds Account Titles and Explanation Debit Credit Interest Expense Notes Payable Cash 7,800,000 (To record first interest payment) Interest Expense Notes Payable Cash 7,800,000 (To record second interest payment)