Question
On the first day of the fiscal year, a company issues a $8,600,000, 10%, 10-year bond that pays semiannual interest of $430,000 ($8,600,00010%1/2), receiving cash
On the first day of the fiscal year, a company issues a $8,600,000, 10%, 10-year bond that pays semiannual interest of $430,000 ($8,600,00010%1/2), receiving cash of $9,768,769. Jiurnalize the first interest payment and the amortization of the related bond premium. Round to nearest dollar.
Interest Expense
Premium on Bonds Payable
Cash
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Wiley CIA Essentials Of Internal Auditing Exam Review 2022 Part 1
Authors: S. Rao Vallabhaneni
1st Edition
1119846285, 978-1119846284
