Long-term Liabilities And Receiva Recording the Issuance of bonds Company j sells bonds with a face value of $400,000 on the authorization date at 102 Cash($400,000x1.02) 408.000 Bonds payable 400.000 A contra account- yable 8.000 subtracted from nds with a face value of Bonds payable lthorization date at 97 Cash($40 388.000 Discount on bonds payable 12.000 Bonds payable 400.000Recording the Issuance of Bonds Company J sells bonds with a face value of $400,000 on the authorization date at 102. Cash ($400,000 x 1.02) 408,000 Bonds Payable 400,000 Premium on Bonds Payable 8,000 Company M sells bonds with a face value of $400,000 on the authorization date at 97. Cash ($400,000 x .97) 388,000 Discount on Bonds Payable 12,000 Bonds Payable 400,000 A contra account— subtracted from Bonds Payable Intermediate Accounting 11 Long-term Liabilities And Receivables