1. Issuing Bonds at a Discount

On the first day of the fiscal year, a company issues a $8,200,000, 9%, 5-year bond that pays semiannual interest of $369,000 ($8,200,000 9% ), receiving cash of $7,883,409.

Journalize the bond issuance. If an amount box does not require an entry, leave it blank.

• Accounts Payable
• Bonds Payable
• Cash
• Interest Expense
• Interest Payable
• Premium on Bonds Payable

		fill in the blank 2	fill in the blank 3
		fill in the blank 5	fill in the blank 6
		fill in the blank 8	fill in the blank 9

2. The independent auditor's report

a.gives the auditor's opinion regarding the fairness of the financial statements

b.summarizes what the auditor did

c.states that the financial statements were presented on time

d.describes which financial statements are covered by the audit

3. On July 1 of the current year, the assets and liabilities of John Wong, DVM, are as follows: Cash, $10,242; Accounts Receivable, $8,407; Supplies, $1,842; Land, $24,497; Accounts Payable, $5,833. What is the amount of stockholders' equity as of July 1 of the current year?