Table 15-1 The Simpson Corporation issued 8%, 10-year term bonds on January 1, 20X2, with a maturity value of $1,000,000. Interest is payable semi-annually on June 30 and December 31. The bonds were issued for $875,378, a price to yield the investor 10%. Simpson uses the effective-interest method. 6. Refer to Table 15-1. The journal entry to record the issuance of the bonds will include a: credit to Bonds Payable for $875, 378. debit to Cash for $1,000,000. debit to Discount on Bonds Payable for $124,622. debit to Interest Payable $124,622. 7. Refer to Table 15-1. The joumal entry to record the payment of interest on June 30, 20X1, will include a: debit to Interest Expense for $40,000 credit to Cash $43,769. debit to Cash, 550,000. credit to Discount on Bonds Payable, 53,769. Refer to Table 15.1. The carrying value of the bonds payable on June 30, 20X2 is: $1,000,000 $875,378 $879.147 $870,999