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On the first day of the fiscal year, a company issues a $980,000, 8%, 5-year bond that pays semiannual interest of $39,200 ($980,000 8% x 1/2), receiving cash of $884,177 Required: Journalize the entry to record the issuance of the bonds Refer to the Chart of Accounts for exact wording of account titles On the first day of the fiscal year, a company issues an $698,000, 6%, 5-year bond that pays semiannual interest of $20,940 ($698,000 6% 1/2), receiving cash of $656,120, Required: Journalize the entry to record the first interest payment and the amortization of the related bond discount using the straight-line method. Refer to the Chart of Accounts for exact wording of account titles

On the first day of the fiscal year, a company issues a $980,000, 8%, 5-year bond that pays semiannual interest of $39,200 ($980,000 8% x 1/2), receiving cash of $884,177 Required: Journalize the entry to record the issuance of the bonds Refer to the Chart of Accounts for exact wording of account titles On the first day of the fiscal year, a company issues an $698,000, 6%, 5-year bond that pays semiannual interest of $20,940 ($698,000 6% 1/2), receiving cash of $656,120, Required: Journalize the entry to record the first interest payment and the amortization of the related bond discount using the straight-line method. Refer to the Chart of Accounts for exact wording of account titles

Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
ChapterMB: Model-building Problems
Section: Chapter Questions
Problem 13M
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On the first day of the fiscal year, a company issues a $980,000, 8%, 5-year bond that pays semiannual interest of $39,200 ($980,000 8% x 1/2), receiving cash of $884,177 Required: Journalize the entry to record the issuance of the bonds. Refer to the Chart of Accounts for exact wording of account titles On the first day of the fiscal year, a company issues an $698,000, 6%, 5-year bond that pays semiannual interest of $20,940 (5698,000 6% 1/2), receiving cash of $656,120 Required: Journalize the entry to record the first interest payment and the amortization of the related bond discount using the straight-line method. Refer to the Chart of Accounts for exact wording of account titles
Transcribed Image Text:On the first day of the fiscal year, a company issues a $980,000, 8%, 5-year bond that pays semiannual interest of $39,200 ($980,000 8% x 1/2), receiving cash of $884,177 Required: Journalize the entry to record the issuance of the bonds. Refer to the Chart of Accounts for exact wording of account titles On the first day of the fiscal year, a company issues an $698,000, 6%, 5-year bond that pays semiannual interest of $20,940 (5698,000 6% 1/2), receiving cash of $656,120 Required: Journalize the entry to record the first interest payment and the amortization of the related bond discount using the straight-line method. Refer to the Chart of Accounts for exact wording of account titles
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