Issuing Bonds at a Premium On the first day of the fiscal year, a company issues a $1,200,000, 6%, 8-year bond that pays semiannual interest of $36,000 ($1,200,000 x 6% x 1/2), receiving cash of $1,454,364. Journalize the bond issuance. If an amount box does not require an entry, leave it blank.

Issuing Bonds at a Premium On the first day of the fiscal year, a company issues a $1,200,000, 6%, 8-year bond that pays semiannual interest of $36,000 ($1,200,000 x 6% x 1/2), receiving cash of $1,454,364. Journalize the bond issuance. If an amount box does not require an entry, leave it blank.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Issuing Bonds at a Premium
$1,454,364.
On the first day of the fiscal year, a company issues a $1,200,000, 6%, 8-year bond that pays semiannual interest of $36,000 ($1,200,000 x 6% x 12), receiving cash of
Journalize the bond issuance. If an amount box does not require an entry, leave it blank.
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