Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $4,700,000, 6%, 4-year bond that pays semiannual interest of $141,000 ($4,700,000 x 6% x 2), receiving cash of $4,538,462. Journalize the entry to record the issuance of the bonds. If an amount box does not require an entry, leave it blank.
Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $4,700,000, 6%, 4-year bond that pays semiannual interest of $141,000 ($4,700,000 x 6% x 2), receiving cash of $4,538,462. Journalize the entry to record the issuance of the bonds. If an amount box does not require an entry, leave it blank.
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 5PA: Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July...
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