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Asked Dec 31, 2019
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On January 1, the first day of the fiscal year, a company issues a $5,000,000, 6%, 10-year bond that pays semiannual interest of $150,000 ($5,000,000 x
6% x % year), receiving cash of $5,000,000.
Journalize the entries to record (a) the issuance of the bonds, (b) the first interest payment on June 30, and (c) the payment of the principal on the maturity
date of December 31. Refer to the Chart of Accounts for exact wording of account titles.
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On January 1, the first day of the fiscal year, a company issues a $5,000,000, 6%, 10-year bond that pays semiannual interest of $150,000 ($5,000,000 x 6% x % year), receiving cash of $5,000,000. Journalize the entries to record (a) the issuance of the bonds, (b) the first interest payment on June 30, and (c) the payment of the principal on the maturity date of December 31. Refer to the Chart of Accounts for exact wording of account titles.

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Step 1

(a) Prepare journal entry for issuance of bonds on January 1.

Accounting homework question answer, step 1, image 1
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Step 2

(b) Prepare journal entry for first ...

Accounting homework question answer, step 2, image 1
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