Question
On the first day of the fiscal year, a company issues an $309,000, 7%, 5-year bond that pays semiannual interest of $10,815 ($309,000 x 7%
On the first day of the fiscal year, a company issues an $309,000, 7%, 5-year bond that pays semiannual interest of $10,815 ($309,000 x 7% x 1/2), receiving cash of $290,500. Journalize the entry for the first interest payment and the amortization of the related bond discount using the straight-line method.
If an amount box does not require an entry, leave it blank.
| blank | Bonds PayableCashDiscount on Bonds PayableInterest ExpensePremium on Bonds Payable | - Select - | - Select - |
| Bonds PayableDiscount on Bonds PayableInterest ExpenseInterest PayableInterest Revenue | - Select - | - Select - | |
| Bonds PayableCashInterest ExpenseNotes PayablePremium on Bonds Payable | - Select - | - Select - |
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Business Accounting An Introduction To Financial And Management Accounting
Authors: Jill Collis, Roger Hussey, Andrew Holt, Holt Collis, J. Collis
2nd Edition
9780230276239
