Question
Issuing bonds at a premium On the first day of the fiscal year, a company issues a $6,000,000, 6%, 5-year bond that pays semiannual interest
Issuing bonds at a premium
On the first day of the fiscal year, a company issues a $6,000,000, 6%, 5-year bond that pays semiannual interest of $180,000 ($6,000,000 6% ), receiving cash of $6,300,000.
Journalize the bond issuance. If an amount box does not require an entry, leave it blank.
| Accounts PayableCashInterest ExpenseInterest PayablePremium on Bonds PayableCash | Cash | Cash | |
| Accounts PayableDiscount on Bonds PayableCashInterest PayablePremium on Bonds PayablePremium on Bonds Payable | Premium on Bonds Payable | Premium on Bonds Payable | |
| Accounts PayableBonds PayableDiscount on Bonds PayableCashInterest PayableBonds Payable |
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Financial Accounting
Authors: Libby, Short
6th Edition
978-0071284714, 9780077300333, 71284710, 77300335, 978-0073526881
