The journal entry to record the interest cash payment for a bond issued at a discount results in an increase in the book value of the bond liability.

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When a bond is issued at a discount, its book value (or carrying value) on the balance sheet is less than its face value (or par value). As interest payments are made, the book value of the bond liability increases towards its face value. The journal entry to record the interest cash payment for a bond issued at a discount would include a debit to Interest Expense (which increases the book value of the bond liability) and a credit to Cash.

The Journal Entry to Record the Interest Cash Payment for a Bond