Question
On the first day of the fiscal year, a company issues an $839,000, 9%, 5-year bond that pays semiannual interest of $37,755 ($839,000 x 9%
On the first day of the fiscal year, a company issues an $839,000, 9%, 5-year bond that pays semiannual interest of $37,755 ($839,000 x 9% x 1/2), receiving cash of $788,700. 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.
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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