Question
On the first day of the fiscal year, a company issues a $1,400,000, 7%, 4-year bondthat pays semiannual interest of $49,000 ($1,400,000 7% ), receiving
On the first day of the fiscal year, a company issues a $1,400,000, 7%, 4-year bondthat pays semiannual interest of $49,000 ($1,400,000 7% ), receiving cash of $1,553,835.
Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.
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Premium on Bonds Payable | |||||||||||||||||||||||||||||||
Cash ....................................................................................................................................................................................................................................................................................................................... On the first day of the fiscal year, a company issues a $1,500,000, 6%, 7-year bond that pays semiannual interest of $45,000 ($1,500,000 6% ), receiving cash of $1,341,552. Journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.
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