[onmyown89]

How do I prepare a journal entry for the issuance of bonds and to record the semiannual interest payment on the bond?

[morgaine300]

A bond is a loan from investors. It's like getting a loan from a bank, except that it's coming from investors like you and me. So it's a Bond Payable, recorded as a credit at face value. If it doesn't say otherwise, assume it was issued for Cash.

You could have a discount or premium. If it was issued at higher than face value, you have a premium. Since that adds to the value of the bond, it too has to be a credit (since the bond is a credit). If it's sold less than the face value, you have a discount, which is a contra account and recorded as a debit so that it offsets the bond payable balance.

As for interest... if it's just interest paid, then it's a debit to Interest Expense and a credit to Cash. If you have to accrue anything or start amortizing premiums and discounts, that gets into too many other possibilities based on dates, how often the interest is paid, what kind of amortization, etc.