Long-term Liabilities And Receiva Issuing Bonds at a Discount Straight-Line method Jet company records the first interest payment on June 30. 2004 Interest Expense 6.702.36 Discount on bonds payable 702.36 Cash $6.000+$702.36 1000036110Jet Company records the first interest payment on June 30, 2004. Interest Expense 6,702.36 Discount on Bonds Payable 702.36 Cash 6,000.00 $6,000 + $702.36 Issuing Bonds at a Discount $100,000 x 0.12 x 1/2 $7,023.61 ÷ 10 Straight-Line Method Intermediate Accounting 11 Long-term Liabilities And Receivables