On the first day of the fiscal year, a company issues a $1,000,000, 8% ,5 year bond that pays an annual interest of 40,000(1,000,0008%1/2), receiving cash of $951,590.

CHART OF ACCOUNTs General Ledger REVENUE ASSETS 410 Sales 610 Interest Revenue 611 Gain on Redempion of Bonds 110 Cash 111 Petty Cash 121 Accounts Receivable 122 Allowance for Doubtul Accounts EXPENSES 126 Interest Receivable 127 Notes Receivable 131 Merchandise Inventory 141 Office Supplies 191 Land 194 Office Equipment 195 Accumulated Depreciation-Office Equipment 510 Cost of Merchandise Sold 515 Credit Card Expense 516 Cash Short and Over 522 Ofice Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Repairs Expense counts 533 Repairs Expense 535 Rent Expense 536 Insurance Expense 537 Office Supplies Expense 541 Bad Debt Expense 562 Depreciation Expense Office Equipment 590 Miscellaneous Expense 710 Interest Expense 711 Lets on Redemption of Bonds 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 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 SaTe of Treasury Stock 340 Retained Earnings 351 Cash Dividends 352 Stock Dividends 390 Income Summay Journal the bond issuance on January 1. Refer to the Chart ot Accounts for exact wording of account ades PAGE #0 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION All work saved