Show Me How Issuing Bonds at Face Amount On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $900,000, 7%, 10-year bond that pays semiannual interest of $31,500 ($900,000 × 7% x year), receiving cash of $900,000. (a) Journalize the entry to record the issuance of the bonds. If an amount box does not require an entry, leave it blank. (b) Journalize the entry to record the first interest payment on June 30. If an amount box does not require an entry, leave it blank. (c) Journalize the entry to record the payment of the principal on the maturity date. If an amount box does not require an entry, leave it blank.
Show Me How Issuing Bonds at Face Amount On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $900,000, 7%, 10-year bond that pays semiannual interest of $31,500 ($900,000 × 7% x year), receiving cash of $900,000. (a) Journalize the entry to record the issuance of the bonds. If an amount box does not require an entry, leave it blank. (b) Journalize the entry to record the first interest payment on June 30. If an amount box does not require an entry, leave it blank. (c) Journalize the entry to record the payment of the principal on the maturity date. If an amount box does not require an entry, leave it blank.
Chapter1: Financial Statements And Business Decisions
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(a) Journalize the entry to record the issuance of the bonds. If an amount box does not require an entry, leave it blank.
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Issuing Bonds at Face Amount
year), receiving cash of $900,000.
On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $900,000, 7%, 10-year bond that pays semiannual interest of $31,500 ($900,000 × 7% × ½
(b) Journalize the entry to record the first interest payment on June 30. If an amount box does not require an entry, leave it blank.
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(c) Journalize the entry to record the payment of the principal on the maturity date. If an amount box does not require an entry, leave it blank.
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