Instructions On the first day of the fiscal year, a company issues a $3,500,000, 6%, five-year bond that pays semiannual interest of $105,000 ($3,500,000 x 6% x %2), receiving cash of $3,350,000. Journalize the bond issuance on January 1. Refer to the Chart of Accounts for exact wording of account titles.

Instructions On the first day of the fiscal year, a company issues a $3,500,000, 6%, five-year bond that pays semiannual interest of $105,000 ($3,500,000 x 6% x %2), receiving cash of $3,350,000. Journalize the bond issuance on January 1. Refer to the Chart of Accounts for exact wording of account titles.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 7MC: On January 1 a company issues a $75,000 bond that pays interest semi-annually. The first interest...

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