On January 1, the first day of the fiscal year, a company issues a $2,400,000, 4%, five-year bond that pays semiannual interest of $48,000 ($2,400,000 × 4% × ½), receiving cash of $2,353,000. Required:   Journalize the first interest payment and the amortization of the related bond discount. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

During Year 1 and Year 2, Kale Co. completed the following transactions relating to its bond issue. The company’s fiscal year ends on December 31.   Year 1   Mar. 1   Issued $200,000 of 8 year, 6 percent bonds for $194,000. The semiannual cash payment for interest is due on March 1 and September 1, beginning September Year 1. Sept. 1   Recognized interest expense including the amortization of the discount and made the semiannual cash payment for interest. Dec. 31   Recognized accrued interest expense including the amortization of the discount.   Year 2   Mar. 1   Recognized interest expense including the amortization of the discount and made the semiannual cash payment for interest. Sept. 1   Recognized interest expense including the amortization of the discount and made the semiannual cash payment for interest. Dec. 31   Recognized accrued interest expense including the amortization of the discount. Prepare the liabilities section of the balance sheet at December…

On July 1, a company issues a $1,000,000, 7%, five-year bond that pays semiannual interest of $35,000 ($1,000,000 × 7% × 1/2), receiving cash of $884,171.   Required:   Journalize the first interest payment and the amortization of the related bond discount/premium using the straight-line method. Round answers to the nearest dollar. Refer to the Chart of Accounts for exact wording of account titles.

On the first day of the fiscal year, a company issues an $2,750,000, 8%, five-year bond that pays semiannual interest of $110,000 ($2,750,000 x 8% x ½), receiving cash of $2,938,110. Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. Refer to the Chart of Accounts for exact wording of account titles.   Chart of Accounts     CHART OF ACCOUNTS   General Ledger   ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable 122 Allowance for Doubtful Accounts 126 Interest Receivable 127 Notes Receivable 131 Merchandise Inventory 141 Office Supplies 191 Land 194 Office Equipment 195 Accumulated Depreciation-Office Equipment   LIABILITIES 210 Accounts Payable 221 Salaries Payable 231 Sales Tax Payable 232 Interest Payable 241 Notes Payable 251 Bonds Payable 252 Discount on Bonds Payable 253 Premium on Bonds Payable   EQUITY 311 Common Stock…