On the first day of the fiscal year, a company issues a $6,400,000, 6%, 9-year bond that pays semiannual interest of $192,000 ($6,400,000 × 6% × ½), receiving cash of $5,589,805. Journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.   Interest Expense        Discount on Bonds Payable        Cash

Question

On the first day of the fiscal year, a company issues a $6,400,000, 6%, 9-year bond that pays semiannual interest of $192,000 ($6,400,000 × 6% × ½), receiving cash of $5,589,805.

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

  Interest Expense     
  Discount on Bonds Payable     
  Cash 

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Bond/Notes Valuation

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: For the following activitie, explain which of the objectives of managerial accounting activity is in...

A: Managerial accounting:   Managerial accounting is a system, or a process of collecting and organizin...

Q: Munchak Company’s relevant range of production is 9,000–11,000 units. Last month the company produce...

A: Click to see the answer

Q: Explain the meaning of the term least squares in the least-squares regression method of cost estimat...

A: Cost estimation:   Cost estimation is the process of ascertaining the behaviour of particular cost.

Q: Thompson manufacturing produces industrial scales for the electronics industry. Management is consid...

A: Break-even is that point at which the project or an entity is in a situation of no profit & no l...

Q: Earth's Treasures Mining Co. acquired mineral rights for $57,750,000. The mineral deposit is estimat...

A: Depletion Cost: Depletion word is used to the reference of natural resources like oil, wells, mines,...

Q: Accounting Question

A: Contribution Margin Per Unit: Contribution margin is the amount left after covering variable cost pa...

Q: Hybachi Company is trying to decide whether it should purchase new equipment and continue to make it...

A: Depreciation formula: Annual depreciation = ( cost of asset - salvage value ) / useful life of years...

Q: Please, help me solve it!

A: The difference between the absorption and variable costing methods is the treatment of fixed manufac...

Q: Mr. Yiadom decided on 1 July, to invest his insurance compensation of GHȼ 4,000,000 in a retail busi...

A: 'FIFO' means First In First Out. This method assumes that inventory is sold in the order of purchase...

Q: Marcos Company, which had 35,000 shares of common stock outstanding, declared a 4-for-1 stock split....

A: The split of shares: under this system, the whole share amount is to be the same as before but the n...

Q: How will relating product contribution margins to the amount of the constrained resource they consum...

A: Definition: Contribution Margin: The process or theory which is used to judge the benefit given by e...

Q: What is the chief difference between manufacturing and service industry firms?

A: Click to see the answer

Q: Bonds Payable has a balance of $987,000 and Premium on Bonds Payable has a balance of $10,857. If th...

A: If the bond is redeemed at 102, then its redeemed at a premium of 2% from its face value.  

Q: Define the following: (a) direct materials, (b) indirect materials, (c) direct labor, (d) indirect l...

A: Cost:   Cost can be defined as the cash and cash equivalent which is incurred against the products o...

Q: Why does the balanced scorecard include financial performance measures as well as measures of how we...

A: Balanced Score Card: Balanced Score Card is a tool used for determining the impact of the major busi...

Q: Gigabyte, Inc. manufactures three products for the computer industry: Gismos (product G): annual sal...

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question...

Q: Prentice Company is considering dropping one of its product lines. What costs of the product line wo...

A: Relevant Cost: Relevant cost is the avoidable cost which incurred at the time of the decision making...

Q: In what fundamental ways does activity-based costing differ from traditional costing methods?

A: Activity based costing and job order costing are two methods of assigning the cost to the product ma...

Q: Manufacturing costs for Rustag Company for selected months are as follows: April RO. 80,000 280,000 ...

A: (a) 890,000 - (280,000 + 195,000) = 415,000 (b) 890,000 + 80,000 = 970,000 (c) 970,000 - 75,000 = 89...

Q: Provide two reasons why overhead might be underapplied in a given year.

A: Click to see the answer

Q: 2. Al-Bustan Co. gathered the following information on total costs and factory machine usage for the...

A: Mixed Cost  are cost which fluctuates with the level of activity but not in exact proportion.For cal...

Q: How could your college or university use the concepts in the balanced scorecard? List two possible p...

A: Click to see the answer

Q: Depletion Intra-Spect Mining Co. acquired mineral rights for $144,500,000. The mineral deposit is es...

A: Formula: Depletion rate = Total mineral rights / Mineral deposit.

Q: Orbital Communications, Inc. manufactures communications satellites used in TV signal transmission. ...

A: Annual Differential Cost between two alternatives : $33,000

Q: Distinguish between product costs and period costs.

A: Cost:   It is the economic value of resources incurred by a firm to manufacture a product or render ...

Q: Lenny Florita, an unmarried employee, works 46 hours in the week ended January 12. His pay rate is $...

A: Click to see the answer

Q: Describe the two aspects of adequate disclosure in preparing and presenting of Islamic accounting in...

A: Adequate Disclosures: In accounting, there is a need for adequate disclosures as these provide a cle...

Q: Exercise 10-1 Compute the Return on Investment (ROI) [LO10-1] Alyeska Services Company, a division o...

A: Since the 'Sales' and 'Net Operating Income' amounts are given in the question, based on that we nee...

Q: 1. What is the differences between restricted and unrestricted investment account?   (A) Right t...

A: Islamic  Accounting Islamic accounting can be defined as the process of accounting based on  Islamic...

Q: Question 14-10 - When the Bell System was broken up, the old AT&T was split into a new AT&T ...

A: “Since you have posted multiple questions, we will solve the first question for you. To get remainin...

Q: Why are discounted cash flow methods of making capital budgeting decisions superior to other methods...

A: Definition: Discounted cash flows: Discounted cash flow (DCF) is a valuation method used to estimate...

Q: Explain briefly how activity-based costing (ABC) affects cost-volume-profit analysis.

A: Cost volume profit analysis: This analysis is helpful in determining how any type of change in cost ...

Q: Week 2- Analyzing Transactions and the Adjusting Process Define the following: Accrual basis of a...

A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,...

Q: At the end of 2018, the shares of Çatal Ltd, a farming company, traded at $20.50 each. In its 2018 a...

A: Calculation of Per Share Value at the beginning of the year 2019:  

Q: 3. Nizwa Co. has the following information available for September 2015. R.O. 10,800 R.O. 2,600 R.O....

A: Cost Volume Profit Income Statement Cost Volume Profit (CVP) Income Statement is a statement that sh...

Q: Estimating Doubtful Accounts Performance Bike Co. is a wholesaler of motorcycle supplies. An aging o...

A: Bad debts expenses refers to an expense for recording accounts receivable which are uncollectible fr...

Q: Question 1 The Trial Balance as at 30th June 2018 and 2019 are disclosed on the next page for ABC Re...

A: Balance Sheet or the Statement of financial Position lists out the assets, liabilities and equity of...

Q: Preparation of Adjustments on a Spreadsheet for a Merchandising Business: Periodic Method The trial ...

A: Adjusting journal entries are the adjustments made in the books of accounts at the end of the financ...

Q: A company issued 7%, 15-year bonds with a par value of $510,000 that pay interest semiannually. The ...

A: Formulas: Interest payment = Face value * Interest rate

Q: Backwoods Mining Co. acquired mineral rights for $53,200,000. The mineral deposit is estimated at 19...

A: Depletion expense for tons = Cost of mineral right/ Estimated deposit = 53,200,000/19,000,000 = $2.8...

Q: The president of your company wants you to count merchandise inventory from the factory in preparati...

A: Click to see the answer

Q: Proctor provides 1 year warranty on every chair it produces and sells. On 12-31-19, proctor reported...

A: Calculate excess amount recognized as follows:

Q: NBC paid $401 million for the rights to televise the 1992 Summer Olympic Games, and it was widely re...

A: In this question Company N and Company C have intangible assets in terms of rights. Intangible asset...

Q: WHAT IS THE INCOME STATEMENT FOR THE FOLLOWING During its first month of operation, the Quick Tax Co...

A: Since you have asked for the income statement, we are providing you the income statement and not the...

Q: Note Receivable Same Day Surgery Center received a 120-day, 7% note for $72,000, dated April 9, from...

A: Note par value = $72000 Interest rate = 7% Tenure = 120  days a) The due date of the note is 120 day...

Q: Ahsan malik launched a new business and completed these transactions during december  Dec1 invested ...

A: All the Cash Transactions are included in the Cash Flow Statement. The transactions done on credit b...

Q: Define the term equivalent unit and explain how the concept is used in process costing.

A: Physical units are converted into equivalent units after getting multiplied with the percentage of c...

Q: 1. Explain the functions of Islamic banks and how they differ from those of their conventional count...

A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,...

Q: Explain the main types of audit based on its objectives

A: Audit is a systematic examination of the financial records to check that the financial records provi...

Q: Describe the Units-of-Production Method?

A: Click to see the answer