On January 1, the first day of the fiscal year, a company issues a $2,250,000, 11 , five year bond that pays semiannual interest of $123,750 ($2,250,000 11 ), receiving cash of $2,206,310 Journalize the first interest payment and the amortization of the related bond discount Round to the nearest dollar Refer to the Chart of Accounts for exact wording of account titles CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable 122 Allowance for Doubtful Accounts 126 Interest Receivable 127 Notes Receivable 131 Merchandise Inventory 141 Office Supplies 191 Land 194 Office Equipment 195 Accumulated Depreciation Office Equipment LIABILITIES 210 Accounts Payable 221 Salaries Payable 231 Sales Tax Payable 232 Interest Payable 241 Notes Payable 251 Bonds Payable 252 Discount on Bonds Payable 253 Premium on Bonds Payable EQUITY 311 Common Stock 312 Paid In Capital in Excess of Par Common Stock 315 Treasury Stock 321 Preferred Stock 322 Paid In Capital in Excess of Par Preferred Stock 331 Paid In Capital from Sale of Treasury Stock 340 Retained Earnings 351 Cash Dividends 352 Stock Dividends 390 Income Summary Journalize the first interest payment and the amortization of the related bond discount Round to the nearest dollar Refer to the Chart of Accounts for exact wording of account titles PAGE 10 JOURNAL DATE DESCRIPTION POST REF DEBIT CREDIT 1 2 3

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On January 1, the first day of the fiscal year, a company issues a $2,250,000, 11%, five-year bond that pays semiannual interest of $123,750 ($2,250,000

On January 1, the first day of the fiscal year, a company issues a $2,250,000, 11%, five-year bond that pays semiannual interest of $123,750 ($2,250,000 11% ), receiving cash of $2,206,310.

Journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. Refer to the Chart of Accounts for exact wording of account titles.

CHART OF ACCOUNTS

General Ledger

	ASSETS
110	Cash
111	Petty Cash
121	Accounts Receivable
122	Allowance for Doubtful Accounts
126	Interest Receivable
127	Notes Receivable
131	Merchandise Inventory
141	Office Supplies
191	Land
194	Office Equipment
195	Accumulated Depreciation-Office Equipment

	LIABILITIES
210	Accounts Payable
221	Salaries Payable
231	Sales Tax Payable
232	Interest Payable
241	Notes Payable
251	Bonds Payable
252	Discount on Bonds Payable
253	Premium on Bonds Payable

EQUITY

311

Common Stock

312

Paid-In Capital in Excess of Par-Common Stock

315

Treasury Stock

321

Preferred Stock

322

Paid-In Capital in Excess of Par-Preferred Stock

331

Paid-In Capital from Sale of Treasury Stock

340

Retained Earnings

351

Cash Dividends

352

Stock Dividends

390

Income Summary

Journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 10

JOURNAL