On January 1, the first day of the fiscal year, a company issues a $1,500,000, 11% , five-year bond that pays semiannual interest of $82,500 ($1,500,000 x 11% x %), receiving cash of $1,604,070. Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. Refer to the Chart of Accounts for exact wording of account titles. Journal 1 3 DATE DESCRIPTION JOURNAL POST. REF. DEBIT CREDIT
On January 1, the first day of the fiscal year, a company issues a $1,500,000, 11% , five-year bond that pays semiannual interest of $82,500 ($1,500,000 x 11% x %), receiving cash of $1,604,070. Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. Refer to the Chart of Accounts for exact wording of account titles. Journal 1 3 DATE DESCRIPTION JOURNAL POST. REF. DEBIT CREDIT
Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter11: Liabilities: Bonds Payable
Section: Chapter Questions
Problem 11.1BE: Issuing bonds at face amount On January 1, the first day of the fiscal year, Designer Fabric Inc....
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