ssuing Bonds at a Discount

On the first day of the fiscal year, a company issues a $2,000,000, 8%, 9-year bond that pays semiannual interest of $80,000 ($2,000,000 8% ), receiving cash of $1,662,618.

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

Cash

Discount on Bonds Payable

Bonds Payable