On March 1, 2022, Cheryl Corp. issued a $800,000, 6 % two-year bond at a premium price of 103 when the market interest rate was 5% on the date of issue. Interest is payable semi-annually each September 1, and March 1. Using the straight-line interest method, prepare the journal entries to record the following events. a. Bond issuance on March 1, 2022: b. First interest payment on September 1, 2022: c. Second interest payment on: Date Debit Date Debit Debit d. Payoff of bond back to bond holders (please include date): Debit Credit Credit Credit Credit

Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows fro…

A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the …

Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It…

Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expect…