Question
Company Z issued a 30-year bond on April 1, 2019 that is dated January 1, 2019. The bond was issued at par with a par
Company Z issued a 30-year bond on April 1, 2019 that is dated January 1, 2019. The bond was issued at par with a par value of $1,200,000. The bond has an annual interest rate of 4%, payable semiannually on July 1 and January 1. Record the journal entry related to the issuance of the bond as well as the first payment of interest.
| Cash | 1212000 | |
| Bonds Payable | 1200000 | |
| Interest Expense | 12000 | |
| Interest Expense | 24000 | |
| Cash | 24000 | |
| HOW DOES THE CASH VALUE WORK. GOT IT FROM THE ANSWER KEY!!! |
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Essentials of Accounting for Governmental and Not-for-Profit Organizations
Authors: Paul A. Copley
10th Edition
007352705X, 978-0073527055
