Question
Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $6,900,000, 6%, 7-year bond that pays semiannual interest
IssuingBondsat aDiscount
On the first day of the fiscal year, a company issues a $6,900,000, 6%, 7-year bond that pays semiannual interest of $207,000 ($6,900,000 6% ), receiving cash of $5,841,934.
Journalize the bond issuance. If an amount box does not require an entry, leave it blank.
Cash (Debit) 5.841.934
Discounts on Bonds Payable ________. (Debit)
Bonds Payable 6.900.000 (credit)
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Intermediate Accounting 2014 FASB Update
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
15th edition
978-1118938782, 111893878X, 978-1118985311, 1118985311, 978-1118562185, 1118562186, 978-1118147290
