Question
On the first day of the fiscal year, a company issues a $1,500,000, 11%, five-year bond that pays semiannual interest of $82,500 ($1,500,000 x 11%
On the first day of the fiscal year, a company issues a $1,500,000, 11%, five-year bond that pays semiannual interest of $82,500 ($1,500,000 x 11% x ), receiving cash of $1,604,070.
Journalize the bond issuance on January 1. Refer to the Chart of Accounts for exact wording of account titles.
ACCOUNTING EQUATION
| DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
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Advanced Accounting
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
11th Edition
978-0132568968, 9780132568968
