2. On January 1, 20Y1, Brown Corporation issues 6-year bonds with a face value of $20,000,000 and a stated annual interest rate of 6%. The bonds pay interest annually on December 31. The market rate of interest is 5%, and the company receives cash proceeds of $21,015,138 when the bonds are issued. a) Provide the journal entry that Brown will make to record the second bond interest payment on December 31, 20Y2.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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