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On January 1, the first day of fiscal year, designer Fabric inc. issues a 650000, 7%, 10 year bond that pay semiannual interest of $22750
On January 1, the first day of fiscal year, designer Fabric inc. issues a 650000, 7%, 10 year bond that pay semiannual interest of $22750 (650000 x 7% x 1/2 year), receiving cash of 650,000.
- Journalize the entry to record the issuance of the bonds
- Journalize the entry to record the first interest payment on June 30
- journalize the entry to record the payment of the principal on the maturity date
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