e: Practice! Issuing Bonds at a Discount10Issuing Bonds at a DiscountOn the first day of the fiscal year, a company issues a $4,700,000, 6%, 4-year bond that pays semiannual interest of $141,000 ($4,700,000 x 6% x 2),receiving cash of $4,538,462.Journalize the entry to record the issuance of the bonds. If an anmount box does not require an entry, leave it blank.Submit AnswerTry Another VersionSave and ExitSubrt Assigroentfor

Journal entry to record the issuance of bonds: Date Account Titles Debit ($) Credit ($) xxx…

Answered: Issuing Bonds at a Discount On the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $6,800,000, 8%, 10-year bond that pays semiannual interest of $272,000 ($6,800,000 x 8% x 2), receiving cash of $5,952,570. Journalize the entry to record the issuance of the bonds. If an amount box does not require an entry, leave it blank.
Issuing Bonds at Face Amount On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $250,000, 10%, 10-year bond that pays semiannual interest of $12,500 ($250,000 x 10% x 2 year), receiving cash of $250,000. (a) Journalize the entry to record the issuance of the bonds. If an amount box does not require an entry, leave it blank. (b) Journalize the entry to record the first interest payment on June 30. If an amount box does not require an entry, leave it blank. (c) Journalize the entry to record the payment of the principal on the maturity date. If an amount box does not require an entry, leave it blank. 88
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Date	Account Titles	Debit ($)	Credit ($)
xxx	Cash	4,538,462
	Discount on bonds payable	161,538
	Bonds Payable		4,700,000