On the first day of the fiscal year, a company iss

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 5PA: Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July...
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On the first day of the fiscal year, a company issues a
$1,000,000, 5%, five-year bond that pays semiannual interest of
$25,000 ($1,000,000 × 5% x 1/2), receiving cash of $1,044.913.
Joumalize the entry to record the first interest payment and
amortization of premium using the straight-line method.
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Transcribed Image Text:On the first day of the fiscal year, a company issues a $1,000,000, 5%, five-year bond that pays semiannual interest of $25,000 ($1,000,000 × 5% x 1/2), receiving cash of $1,044.913. Joumalize the entry to record the first interest payment and amortization of premium using the straight-line method. Edit View Insert Format Tools Table 12pt v Paragraph v
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