Issuing Bonds at a Discount
On the first day of the fiscal year, a company issues a $6,400,000, 6%, 5-year bond that pays semiannual interest of $192,000 ($6,400,000 \times 6\% \times \frac{1}{2}), receiving cash of $5,880,902.
Journalize the bond issuance. If an amount box does not require an entry, leave it blank.