Question
On the first day of the fiscal year, a company issues a $755,000, 10%, 10-year bond that pays semiannual interest of $37,750 ($755,000 x 10%
On the first day of the fiscal year, a company issues a $755,000, 10%, 10-year bond that pays semiannual interest of $37,750 ($755,000 x 10% x 1/2), receiving cash of $792,800. Journalize the entry for the first interest payment and amortization of premium using the straight-line method.
If an amount box does not require an entry, leave it blank.
| Bonds PayableCashDiscount on Bonds PayableInterest ExpenseInterest Payable | - Select - | - Select - | |
| Bonds PayableCashDiscount on Bonds PayableInterest RevenuePremium on Bonds Payable | - Select - | - Select - | |
| Bonds PayableCashDiscount on Bonds PayableInterest ExpensePremium on Bonds Payable | - Select - | - Select - |
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Financial Accounting
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
IFRS 3rd edition
1118978080, 978-1119153726, 1119153727, 978-1119153702, 978-1118978085
