Question
Issuing Bonds at a Premium On the first day of the fiscal year, a company issues a $5,800,000, 12%, 10-year bond that pays semiannual interest
Issuing Bonds at a Premium
On the first day of the fiscal year, a company issues a $5,800,000, 12%, 10-year bond that pays semiannual interest of $348,000 ($5,800,000 12% ), receiving cash of $6,146,562.
Journalize the bond issuance. If an amount box does not require an entry, leave it blank.
| Interest Expense | |||
| Discount on Bonds Payable | |||
| Cash |
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Accounting Best Practices
Authors: Steven M. Bragg
3rd Edition
0471444286, 978-0471444282
