On January 1, Year 1, a company issues $570,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 8%, the bonds will issue at $531,269.   Record the bond issue on January 1, Year 1, and the first two semiannual interest payments on June 30, Year 1, and December 31, Year 1. DATE GENERAL JOURNAL DEBIT CREDIT Jan 1       June 30       Dec 31

On the first day of the current fiscal year, $2,000,000 of 10-year, 7% bonds, with interest payable annually, were sold for $2,125,000.  Present entries to record the following transactions for the current fiscal year (for the issuer’s books):   (a) Issuance of the bonds. (b) First annual interest payment. (c) Amortization of bond premium for the year, using the straight-line method of amortization. (for each Journal Entry, omit the step of providing a brief explanation) JOURNAL   Date                                                                             Post.          DR                   CR (a)                                       (b)                             (c)

The Designer Company issued 10-year bonds on January 1. The 7% bonds have a face value of $795,000 and pay interest every January 1 and July 1. The bonds were sold for $660,732 based on the market interest rate of 8%. Designer uses the effective interest method to amortize bond discounts and premiums. On July 1 of the first year, Designer should record interest expense (round to the nearest dollar) of:

On the first day of the fiscal year, a company issues a $1,450,000, 5%, five-year bond that pays semiannual interest of $36,250 ($1,450,000 × 5% × ½), receiving cash of $1,408,720. Journalize the first interest payment and the amortization of the related bond discount. 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 312…