Question

On the first day of the fiscal year, a company issues a $1,100,000, 6%, 9-year bond that pays semiannual interest of $33,000 ($1,100,000 × 6% × ½), receiving cash of $1,178,944.

Journalize the bond issuance. If an amount box does not require an entry, leave it blank.

  Interest Expense     
  Premium on Bonds Payable     
  Cash     

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Journal and Ledger Balance

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