On the first day of the fiscal year, a company issues a $4,800,000, 7%, 8-year bond that pays semiannual interest of $168,000 ($4,800,000 × 7% × ½), receiving cash of $5,101,467. Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.

Q: Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $7,800,000, 8%,…

A: Discount = Face value - Cash Discount = $7,800,000 - $6,791,633 Discount = $1,008,367

Q: On the first day of the fiscal year, a company issues a $4,800,000, 9%, 6-year bond that pays…

A: Formula: Interest expense = Bond face value x Interest rate x Time periods

Q: first day of the fiscal year, a company issues a $5,000,000, 7%, five-year bond that pays semiannual…

A: Solution: When straight line Amortization is followed, the bond premium is based on total amount of…

Q: On the first day of the fiscal year, a company issues a $968,000, 8%, 10-year bond that pays…

A: Working Note: Total premium on Bonds = Issue value - Face value of the bonds = $1,016,400 - 968,000…

Q: On the first day of the fiscal year, a company issues an $555,000, 8%, 5-year bond that pays…

A: Discount on bonds = Face value of the bonds - Issue price = $555,000 - $521,700 = $28,300

Q: On January 1, 200C, the Gabriella Corporation issued $800,000, 8%, 10-year bonds at 98. Interest is…

A: working note: 1.The straight-line amortization of an Discount on bond payable will be $1600 ($16000…

Q: On the first day of the fiscal year, a company issues a $2,750,000, 8%, 5-year bond that pays…

A: Bonds are the form of loan or debt that is being issued by the company and on which regular interest…

Q: On the first day of the fiscal year, a company issues a $970,000, 12%, 10-year bond that pays…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: On the first day of the fiscal year, a company issues a $415,000, 7%, 10-year bond that pays…

A: Premium on Bond Payable = $435,800 - $415,000 = $20,800   Interest is paid semiannually for 10…

Q: On the first day of the fiscal year, a company issues a $500,000, 8%, 10-year bond that pays…

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: On the first day of the fiscal year, a company issues a $3,600,000, 9%, 4-year bond that pays…

A: The bonds are issued at discount when market rate is lower than the coupon rate of bonds payable.…

Q: On the first day of the fiscal year, a company issues a $500,000, 8%, 10-year bond that pays…

A: Solution:- Given, Company issues =$500,000, 8%, 10-year bond that semiannual  Interest = $20,000…

Q: On the first day of the fiscal year, a company issues a $2,400,000, 6%, 6-year bond that pays…

A: Bond premium amortization is the process of writing off a bond's premium throughout the bond's life.…

Q: On the first day of the fiscal year, a company issues an $946,000, 8%, 5-year bond that pays…

A: Solution: Discount on issue of bond = Face value - Issue price = $946,000 - $889,240 = $56,760…

Q: On the first day of the fiscal year, a company issues a $8,500,000, 10%, 9-year bond that pays…

A: BOND Bond is a Financial Security which is generally Issued by the Corporations, Government &…

Q: On the first day of the fiscal year, a company issues a $326,000, 6%, 10-year bond that pays…

A: BOND IS AN INSTRUMENT OF INDEBTEDNESS OF THE BOND ISSUER TO THE HOLDER .

Q: Blossom Company issues $3.2 million, 10-year, 9% bonds at 96, with interest payable on December 31.…

A: 1. Date Account Titles and Explanation Debit Credit Jan. 1 Cash ($3,200,000*96/100)…

Q: On the first day of the fiscal year, a company issues a $874,000, 9%, 10-year bond that pays…

A: A record is often kept in the general ledger, but it can also be kept in a single account,…

Q: On the first day of the fiscal year, a company issues a $616,000, 8%, 10-year bond that pays…

A: Cash interest = $24,640 Face value = $616,000Issue Price = $646,800Premium on issue of bond =…

Q: On the first day of the fiscal year, a company issues an $302,000, 8%, 5-year bond that pays…

A: Under the straight line method of amortization, premium or discount of bond need to amortize equally…

Q: On the first day of the fiscal year, a company issues a $8,000,000, 9%, 10-year bond that pays…

A: Bonds are kinds of loan with regular interest payment and mature after certain period  of times.

Q: the first day of the fiscal year, a company issues a $500,000, 8%, 10-year bond that pays semiannual…

A: Bond payable is financial instrument which is used to raise funds for financial obligations. These…

Q: On January 1, the first day of the fiscal year, a company issues a $2,400,000, 4%, five-year bond…

A: Annual Interest=2,400,000×4%=96,000

Q: On the first day of the fiscal year, a company issues a $2,000,000, 3.5%, 5-year bond that pays…

A: Journal entry means the entry in prime book with chronological order. Journal entry should have…

Q: On 1 April, year 1, Happy Corporation issues $50 million of 10%, 30-year bonds payable at par.…

A: Journal entry to record first cash payment to bondholders:

Q: On the first day of the fiscal year, a company issues a $2,050,000, 9%, five-year bond that pays…

A: Bond: It is  long-term financial instrument issued by a company. Interest is paid to bond holders…

Q: Select all that apply A company issues $100,000 of 6%, 10-year bonds dated January 1, that pay…

A: Lets understand the basics.Journal entry is required to make to record event and transaction that…

Q: On the first day of the fiscal year, a company issues a $500,000, 8%, 10-year bond that pays…

A: Total premium on bonds = Total amount received - Face value of bonds = $520000 - $500000 = $20,000

Q: On the first day of the fiscal year, a company issues an $2,250,000, 9%, five-year bond that pays…

A: Premium on Bonds Payable = Issue value of bonds - face value of bonds = $2,379,570 - $2,250,000 =…

Q: On the first day of the fiscal year, a company issues an $2,250,000, 12%, five-year bond that pays…

A: Premium on issue of bonds = Cash received - Par value of bonds = $2,379,360 - $2,250,000 = $129,360

Q: Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a.$4,200,000, 10%,…

A: Bonds are issued by the companies to get the financial resources for working. It is a cheaper source…

Q: he first day of the fiscal year, a company issues a $3,500,000, 5%, 10-year bond that pays…

A: When the bonds are issued at par, the cash received is equal to the bond payable amount. When…

Q: On the first day of the fiscal year, a company issues a $3,300,000, 12%, 6-year bond that pays…

A: The bonds payable are the financial instruments that are used to raise money from the market or…

Q: On the first day of the fiscal year, a company issues a $888,000, 6%, 10-year bond that pays…

A:

Q: On the first day of the fiscal year, a company issues a (n) $935,000, 7%, 5-year bond that pays…

A: The objective of the question is to journalize the entry for the first interest payment and the…

Q: On the first day of the fiscal year, a company issues a $400,000, 6% 5-year bond that pays…

A: If bond issued at amount which is less than the face value then we can say that bond is issued at…

Q: On June 1, $50,000 of bonds were purchased between interest dates. The brokerage commission was…

A: Total Cost of bonds includes cost, brokerage, commission, etc.

Q: On the first day of the fiscal year, a company issues a $3,000,000, 11%, five-year bond that pays…

A: Bonds: Bonds are financial debt instruments issued by the corporations to raise for the purposes of…

Q: On the first day of the fiscal year, a company issues a $8,700,000, 6%, 6-year bond that pays…

A: Bonds Payable is a long-term liabilities issued by the borrower. This document carries a fixed term…

Q: ay of the fiscal year, a company issues an $800,000, 6%, 5-year bond that pays semiannual interest…

A: Solution: Semiannual interest amount = $800,000*6%*6/12 = $24,000 Discount amortization = ($800,000…

Q: On the first day of the fiscal year, a company issues a $3,400,000, 9%, 5-year bond that pays…

A: Solution; Face value of bond = $3,400,000 Issue price of bond = $3,682,766 Premium on issue of bond…

Q: On the first day of the fiscal year, a company issues an $800,000, 6%, 5-year bond that pays…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

Q: On the first day of the fiscal year, a company issues a $1,450,000, 5%, five-year bond that pays…

A: Discount on Bonds Payable = Face value of the bonds - Issue value of the bonds = $1,450,000 -…

Q: On the first day of the fiscal year, a company issues a $784,000, 6%, 10-year bond that pays…

A: A Issue price  $823,800 B Face value  $784,000 C=A-B Premium on bonds payable  $39,800 D No.…