On the first day of the fiscal year, a company issues a $970,000, 12%, 10-year bond that pays semiannual interest of $58,200 ($970,000 x 12% x 1/2), receiving cash of $1,018,500. Journalize the entry for the first interest payment and amortization of premium using the straight-line method.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On the first day of the fiscal year, a company issues a $970,000, 12%, 10-year bond that pays semiannual
interest of $58,200 ($970,000 x 12% x 1/2), receiving cash of $1,018,500. Journalize the entry for the first
interest payment and amortization of premium using the straight-line method.
If an amount box does not require an entry, leave it blank.
Transcribed Image Text:On the first day of the fiscal year, a company issues a $970,000, 12%, 10-year bond that pays semiannual interest of $58,200 ($970,000 x 12% x 1/2), receiving cash of $1,018,500. Journalize the entry for the first interest payment and amortization of premium using the straight-line method. If an amount box does not require an entry, leave it blank.
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