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On the first day of the fiscal year, a company issues a $868,000, 9%, 10-year bond that pays semiannual interest of $39,060 ($868,000 x 9%
On the first day of the fiscal year, a company issues a $868,000, 9%, 10-year bond that pays semiannual interest of $39,060 ($868,000 x 9% x 1/2), receiving cash of $911,400. Required: Journalize the entry to record the first interest payment and amortization of premium using the straight-line method. Refer to the Chart of Accounts for exact wording of account titles. A company issued $1,000,000 of 30-year, 8% callable bonds on April 1, with interest payable on April 1 and October 1. The fiscal year of the company is the calendar year. Journalize the entries to record the following selected transactions: Year 1 Apr. 1 Issued the bonds for cash at their face amount. Oct. 1 Paid the interest on the bonds. Year 3 Oct. 1 Called the bond issue at 104, the rate provided in the bond indenture. (Omit entry for If an amount box does not require an entry, leave it blank.. Year 1 Apr. 1 Year 1 Oct. 1 Year 3 Oct. 1
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