DATE Jun. 30 Cash Interest Expense DESCRIPTION Premium on Bonds Payable POST. REF. DEBIT 57,989.00 16,261.00 CREDIT 74,250.00 ACCOUNTING LIABILITI 1 ASSETS ↑ Points:
DATE Jun. 30 Cash Interest Expense DESCRIPTION Premium on Bonds Payable POST. REF. DEBIT 57,989.00 16,261.00 CREDIT 74,250.00 ACCOUNTING LIABILITI 1 ASSETS ↑ Points:
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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Question
![Instructions
On the first day of the fiscal year, a company issues a $1,350,000, 11%, five-year bond that pays semiannual interest of $74,250 ($1,350,000 x 11% x %),
receiving cash of $1,512,610.
Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. Refer to the Chart of Accounts for exact
wording of account titles.
10:49 PM
0 40
4/28/2022
MacBook Air](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc9c4e6d3-6045-4734-bab1-32fff54ce7c7%2F0f26919d-aec7-4df0-a4c5-468838a4ed8e%2Fdb6qre5_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Instructions
On the first day of the fiscal year, a company issues a $1,350,000, 11%, five-year bond that pays semiannual interest of $74,250 ($1,350,000 x 11% x %),
receiving cash of $1,512,610.
Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. Refer to the Chart of Accounts for exact
wording of account titles.
10:49 PM
0 40
4/28/2022
MacBook Air
![1
3
DATE
Jun. 30
Feedback
Cash
Interest Expense
DESCRIPTION
Premium on Bonds Payable
JOURNAL
2
POST. REF.
MacBook Air
DEBIT
57,989.00
16,261.00
Score: 29/37
CREDIT
74,250.00
ACCOUNTING EQU
LIABILITIES
ASSETS
↑
Points:
10
4/28](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc9c4e6d3-6045-4734-bab1-32fff54ce7c7%2F0f26919d-aec7-4df0-a4c5-468838a4ed8e%2Fb2901hm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1
3
DATE
Jun. 30
Feedback
Cash
Interest Expense
DESCRIPTION
Premium on Bonds Payable
JOURNAL
2
POST. REF.
MacBook Air
DEBIT
57,989.00
16,261.00
Score: 29/37
CREDIT
74,250.00
ACCOUNTING EQU
LIABILITIES
ASSETS
↑
Points:
10
4/28
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