at a Discount On the first day of the fiscal year, a company issues a $4,200,000, 10%, five-year bond that pays semiannual interest of $210,000 ($4,200,000 x 10 % x %), receiving cash of $4,041,710. Journalize the entry to record the issuance of the bonds. If an amount box does not require an entry, leave it blank. Cash Discount on Bonds Payable Bonds Payable Feedback Check My Work ✓
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.
![**Issuing Bonds at a Discount**
On the first day of the fiscal year, a company issues a $4,200,000, 10%, five-year bond that pays semiannual interest of $210,000 ($4,200,000 x 10% x ½), receiving cash of $4,041,710.
Journalize the entry to record the issuance of the bonds. If an amount box does not require an entry, leave it blank.
- **Cash**
- **Discount on Bonds Payable**
- **Bonds Payable**
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Bonds means the instrument where the bond holder gives money to bond issuer and in return bond issuer gives interest to bonds holder during the life time of bonds and return the money on maturity to bond holder. When bonds are issued at more than face value , then it is issued at premium. When bonds are issued at less than face value , then it is issued at discount.
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