On the first day of the fiscal year, a company issues an $4,700,000, 10%, 9-year bond that pays semiannual interest of $235,000 ($4,700,000 x 10% x %), receiving cash of $5,629,874. 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. Interest Expense 5,629,874 X Discount on Bonds Payable Cash Feedhack

Q: On January 1, the first day of the fiscal year, a company issues an $8,600,000, 11%, five-year bond…

A: Bonds: Bonds can be defined as the debt securities issued for the purpose of raising capital for the…

Q: On the first day of the fiscal year, a company issues a $4,800,000, 9%, 6-year bond that pays…

A: Formula: Interest expense = Bond face value x Interest rate x Time periods

Q: On the first day of the fiscal year, a company issues a $1,000,000, 7%, 5-year bond that pays…

A: When an event occurs in the business and it can be measured and expressed in terms of money, it…

Q: On the first day of the fiscal year, a company issues a $2,500,000, 12%, 7-year bond that pays…

A: >Bonds Payable are the source of finance for the companies. >The bondholders are entitle for a…

Q: On the first day of the fiscal year, a company issues a $968,000, 8%, 10-year bond that pays…

A: Working Note: Total premium on Bonds = Issue value - Face value of the bonds = $1,016,400 - 968,000…

Q: On the first day of the fiscal year, a company issues a $2,500,000, 12%, 7-year bond that pays…

A: Discount on bonds payable = face value of bonds - Issue price = $2500000-2387327 = $112673

Q: On the first day of the fiscal year, a company issues a $4,600,000, 6%, 10-year bond that pays…

A: Discount on bonds payable = face value of bonds - Issue price = $4600000-3702451 = $897,549

Q: On the first day of the fiscal year, a company issues a $950,000, 10%, 5-year bond that pays…

A: Journal entries refer to recording/ classifying the business transactions into books of accounts…

Q: On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $950,000, 8%, 10-year…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: On the first day of the fiscal year, a company issues a $5,300,000, 8%, five-year bond that pays…

A: Interest expense = Cash interest paid - premium amortized semi annually

Q: On the first day of the fiscal year, a company issues a $874,000, 9%, 10-year bond that pays…

A: A record is often kept in the general ledger, but it can also be kept in a single account,…

Q: On the first day of the fiscal year, a company issues an $302,000, 8%, 5-year bond that pays…

A: Under the straight line method of amortization, premium or discount of bond need to amortize equally…

Q: On the first day of the fiscal year, a company issues a $967,000, 8%, 10-year bond that pays…

A: A journal entry is used to record a business transaction in an organization's accounting records. A…

Q: On the first day of the fiscal year, a company issues a $920,000, 7%, five-year bond that pays…

A: When the bonds will issue we receive cash , and we have to pay interest through out its duration…

Q: On the first day of the fiscal year, a company issues a $8,900,000, 8%, 5-year bond that pays…

A: Premium on bonds payable:  It occurs when the bonds are issued at a high price than the face value.

Q: On the first day of the fiscal year, a company issues a $500,000, 8%, 10-year bond that pays…

A: Total premium on bonds = Total amount received - Face value of bonds = $520000 - $500000 = $20,000

Q: On the first day of the fiscal year, a company issues a $3,000,000, 11%, five-year bond that pays…

A: Prepare journal entry for issuance of bonds payable.

Q: On the first day of the fiscal year, a company issues an $8,000,000, 11%, five-year bond that pays…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: On the first day of the fiscal year, a company issues an $800,000, 6%, 5-year bond that pays…

A:

Q: On the first day of the fiscal year, a company issues a $3,500,000, 6%, five-year bond that pays…

A: Under straight line amortisation, the bond discount is amortised equally in each year.

Q: On the first day of the fiscal year, a company issues a $4,800,000, 7%, 8-year bond that pays…

A: When bonds are issued at Premium then with each payment part of the premium balance is Amortize with…

Q: On the first day of the fiscal year, a company issues a $8,400,000, 10%, 8-year bond that pays…

A: Bonds are kind of loan on which interest is to be paid and matured after specified period of time.

Q: On the first day of the fiscal year, a company issues a $6,400,000, 6%, 9-year bond that pays…

A: A bond is a fixed income instrument that works like a loan for an investor and for a borrower. Bonds…

Q: On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $650,000, 6%, 10-year…

A: Bonds means an instrument issued by company acknowledging the debt due from company to bond holder.…

Q: On the first day of the fiscal year, a company issues a $3,000,000, 11%, five-year bond that pays…

A: Bonds: Bonds are financial debt instruments issued by the corporations to raise for the purposes of…

Q: On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $750,000, 6%, 10-year…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: On the first day of the fiscal year, a company issues a $3,400,000, 9%, 5-year bond that pays…

A: Solution; Face value of bond = $3,400,000 Issue price of bond = $3,682,766 Premium on issue of bond…

Q: On the first day of the fiscal year, a company issues a $3,500,000, 6%, five-year bond that pays…

A: Formula used: Discount on bonds payable = Face value of bond - Cash received

Q: On the first day of the fiscal year, a company issues an $994,000, 7%, 5-year bond that pays…

A: Total discount on bonds issue =  Face value of the bonds - Issue value of the bonds = 994000-934400…

Q: On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $850,000, 8%, 10-year…

A: Journal is the book of original entry in which all the financial transactions of the business are…

Q: On the first day of the fiscal year, a company issues a $4,900,000, 6%, 6-year bond that pays…

A: Discount on bonds issue = Face value of bonds - issue price =  $4,900,000 - $4,440,130 = $459,870

Q: On the first day of the fiscal year, a company issues a $674,000, 7%, 10-year bond that pays…

A:

Q: On the first day of the fiscal year, a company issues a $970,000, 12%, 10-year bond that pays…

A: Accounts title Debit Credit Interest Expense $55,775   Premium on Bonds Payable $2,425…

Q: On the first day of the fiscal year, a company issues a $8,400,000, 10%, 8-year bond that pays…

A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…

Q: On the first day of the fiscal year, a company issues a $500,000, 8%, 10-year bond that pays…

A: Bond is defined as the financial instrument which represents a debt security through which the…

Q: On the first day of the fiscal year, a company issues a $3,000,000, 11%. five-year bond that pays…

A: Bond Payable: It is the liability of the company which has to pay within the required period of…

Q: On the first day of the fiscal year, a company issues a $5,000,000, 10%, 4-year bond that pays…

A: Premium on Bond issue = Issue price of bonds - Face value of bonds = $5,336,638 - $5,000,000 =…

Q: On the first day of the fiscal year, a company issues a $8,300,000, 6%, 8-year bond that pays…

A: Cash interest  = $8,300,000 x 6% x 1/2 = $249,000

Q: On the first day of the fiscal year, a company issues a $750,000, 7%, five-year bond that pays…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: On the first day of the fiscal year, a company issues an $314,000, 6%, 5-year bond that pays…

A: A company issues bond having face value of $314000 at 6% , 5 year bond , paying semiannual interest…

Q: On the first day of the fiscal year, a company issues a $7,500,000, 8%, five-year bond that pays…

A: Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money…

Q: Count Amo On the first day of the fiscal year, a company issues a $6,300,000, 6%, 5-year bond that…

A: Discount on issue of bonds = face value  - issue price  = $6300000 - $6038029 =$261971

Q: On the first day of the fiscal year, a company issues an $440,000, 10%, five-year bond that pays…

A: Interest expense is a non-operating expense shown on the income statement. It represents interest…

Q: On the first day of the fiscal year, a company issues a $584,000, 11%, 10-year bond that pays…

A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…

Q: On January 1, the first day of the fiscal year, a company issues a $1,800,000, 6%, five-year bond…

A: Bonds are a form of loan or debt that is being issued by the business and on which regular interest…

Q: On the first day of the fiscal year, a company issues a $980,000, 10%, 5-year bond that pays…

A: Solution: Issuance of bond payable will include discount on bond payable of = face value - issue…

Q: On the first day of the fiscal year, a company issues a $3,500,000, 6%, five-year bond that pays…

A: Introduction: Journals: Recording of a business transactions in a chronological order. Firs step in…

Q: The first day of the fiscal year, a company issues a $350,000, 6%, 10-year bond that pays semiannual…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: On the first day of the fiscal year, a company issues a $7,200,000, 10%, 7-year bond that pays…

A: Premium on Bonds Payable=Cash received-Bond Payable=$7,568,023-$7,200,000=$368,023

Q: On the first day the fiscal year, a company issue a $437,000, 7%, 10years bond that pays semiannual…

A: Bonds are a form of debt issued by the company. These are part of long term debt of the business.…