please help solve and explain equation Issuing Bonds at a PremiumOn the first day of the fiscal year, a company issues an $4,900,000, 6%, 4-year bond that pays semiannual interest of $147,000 ($4,900,000 x 6% x 2), receiving cash of$5,258,948.Journalize the bond issuance. If an amount box does not require an entry, leave it blank.Cash4,603,694 XDiscount on Bonds Payable296,306 XBonds Payable4,900,000Feedback

Premium on bonds payable = Cash received - bonds face value = 5,258,948 - 4,900,000…

Issuing Bonds at a Premium On the first day of the fiscal year, a company issues an $4,900,000, 6%, 4-year bond that pays semiannual interest of $147,000 ($4,900,000 x 6% x V2), receiving cash of $5,258,948. Journalize the bond issuance. If an amount box does not require an entry, leave it blank. Cash 4,603,694 Discount on Bonds Payable 296,306 x Bonds Payable 4,900,000

Issuing Bonds at a Premium On the first day of the fiscal year, a company issues an $4,900,000, 6%, 4-year bond that pays semiannual interest of $147,000 ($4,900,000 x 6% x V2), receiving cash of $5,258,948. Journalize the bond issuance. If an amount box does not require an entry, leave it blank. Cash 4,603,694 Discount on Bonds Payable 296,306 x Bonds Payable 4,900,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 7MCQ

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