Question
Issuing Bonds at Face Amount The first day of the fiscal year, a company issues a $800,000, 5%, 10-year bond that pays semiannual interest of
Issuing Bonds at Face Amount
The first day of the fiscal year, a company issues a $800,000, 5%, 10-year bond that pays semiannual interest of $20,000 ($800,000 5% year), receiving cash of $800,000.
a. Journalize the entry to record the issuance of the bonds. If an amount box does not require an entry, leave it blank.
| fill in the blank bc3c78ffaf91fe6_2 | fill in the blank bc3c78ffaf91fe6_3 | ||
| fill in the blank bc3c78ffaf91fe6_5 | fill in the blank bc3c78ffaf91fe6_6 |
b. Journalize the entry to record the first interest payment. If an amount box does not require an entry, leave it blank.
| fill in the blank 790fa3fe305c037_2 | fill in the blank 790fa3fe305c037_3 | ||
| fill in the blank 790fa3fe305c037_5 | fill in the blank 790fa3fe305c037_6 |
c. Journalize the entry to record the payment of the principal on the maturity date. If an amount box does not require an entry, leave it blank.
| fill in the blank ab9df9029fbe06d_2 | fill in the blank ab9df9029fbe06d_3 | ||
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