On the first day of the fiscal year, a company issues a $4,800,000, 9%, 6-year bond that pays semiannual interest of $216,000 ($4,800,000 x 9% x 2), receiving cash of $4,386,311. Journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Interest Expense 216,000 X Discount on Bonds Payable Cash 4,386,311 X

On the first day of the fiscal year, a company issues a $4,800,000, 9%, 6-year bond that pays semiannual interest of $216,000 ($4,800,000 x 9% x 2), receiving cash of $4,386,311. Journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Interest Expense 216,000 X Discount on Bonds Payable Cash 4,386,311 X

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 7MC: On January 1 a company issues a $75,000 bond that pays interest semi-annually. The first interest...

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