Question
19.On the first day of the fiscal year, a company issues an $894,000, 7%, five-year bond that pays semiannual interest of $31,290 ($894,000 x 7%
19.On the first day of the fiscal year, a company issues an $894,000, 7%, five-year bond that pays semiannual interest of $31,290 ($894,000 x 7% x 1/2), receiving cash of $840,400. Journalize the entry to record the first interest payment and the amortization of the related bond discount using the straight-line method.
If an amount box does not require an entry, leave it blank.
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Managerial Accounting
Authors: Wendy M. Tietz, Louis Beaubien, Karen W. Braun
3rd Canadian edition
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