On the first day of the fiscal year, a company issues a $4,800,000, 7%, 8-year bond that pays semiannual interest of $168,000 ($4,800,000 × 7% × ½), receiving cash of $5,101,467. Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 8MC: On October 1 a company sells a 3-year, $2,500,000 bond with an 8% stated interest rate. Interest is...
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On the first day of the fiscal year, a company issues a $4,800,000, 7%, 8-year bond that pays semiannual interest of $168,000 ($4,800,000 × 7% × ½), receiving cash of $5,101,467.

Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.

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