On January 1, the first day of the fiscal year, a company issues a $5,000,000, 6 , 10 year bond that pays semiannual interest of $150,000 ($5,000,000 6 year), receiving cash of $5,000,000 Journalize the entries to record (a) The issuance of the bonds, (b) The first interest payment on June 30, and ...

On January 1, the first day of the fiscal year, a company issues a $5,000,000, 6%, 10-year

Question:

On January 1, the first day of the fiscal year, a company issues a $5,000,000, 6%, 10-year bond that pays semiannual interest of $150,000 ($5,000,000 × 6% × ½ year), receiving cash of $5,000,000. Journalize the entries to record
(a) The issuance of the bonds,
(b) The first interest payment on June 30, and
(c) The payment of the principal on the date.
Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...