Question
Question Content Area On the first day of the fiscal year, a company issues an $888,000, 6%, 5-year bond that pays semiannual interest of $26,640
Question Content Area
On the first day of the fiscal year, a company issues an $888,000, 6%, 5-year bond that pays semiannual interest of $26,640 ($888,000 x 6% x 1/2), receiving cash of $834,700. Journalize the entry to record the first interest payment and the amortization of the related bond discount/premium using the straight-line method.
If an amount box does not require an entry, leave it blank or enter "0".
| 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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College Accounting A Practical Approach Chapters 1-25
Authors: Jeffrey Slater
13th Edition
9780133791006
