Discount Amortization

On the first day of the fiscal year, a company issues a $7,700,000 12%, 4-year bond that pays semiannual interest of $462,000 ($7,700,000 12% ), receiving cash of $7,023,481.

Journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.

Discount Amortization on the first day of the fiscal year, a company issues a $7,700,000, 12%, 4-year bond that pays semiannual interest of 5462,000 (87,900,000 * 12% *), receiving cash of $7,023,481 Journalize the first interest payment and the amortization of the related bond discount, Round to the nearest dollar. If an amount box does not require an entry, leave it blank Interest Expense X Discount on Bonds Payable X X Cash 462.000 Feedback Check My went Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account. The straight-line method of amortiz provides equal amounts of amortization over the life of the bond