### InstructionsOn January 1, the first day of the fiscal year, a company issues a $1,800,000, 4%, five-year bond that pays semiannual interest of $36,000 ($1,800,000 x 4% x ½), receiving cash of $1,992,170.Journalize the bond issuance. Refer to the Chart of Accounts for the exact wording of account titles.### Journal| DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT ||------|--------------|------------|-------|--------|| | | | | || | | | | || | | | | |Explanation:- **Date**: Include the date of the transaction.- **Description**: Provide the account titles and explanations.- **Post. Ref.**: Enter the posting reference number.- **Debit**: Record the debit amount.- **Credit**: Record the credit amount. ### Bond Issuance ExampleIn this journal, you must:1. Debit "Cash" for the amount received, which is $1,992,170.2. Credit "Bonds Payable" for the face value of the bond, which is $1,800,000.3. Credit "Premium on Bonds Payable" for the difference between the cash received and the face value of the bond, which is $192,170.```plaintextJournal Entry:Date: January 1| DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT ||-----------|---------------------------|------------|------------|------------|| January 1 | Cash | | 1,992,170 | || January 1 | Bonds Payable | | | 1,800,000 || January 1 | Premium on Bonds Payable| | | 192,170 |```### Graph/Diagram ExplanationNo graphs or diagrams are present in the image.

When the issue price of the bonds is more than the face value of the bonds the bonds are issued at…

On January 1, the first day of the fiscal year, a company issues a $1,800,000, 4% , five-year bond that pays semiannual interest of $36,000 ($1,800,000 x 4% x %), receiving cash of $1,992,170. Journalize the bond issuance. Refer to the Chart of Accounts for exact wording of account titles. Journal 1 2 DATE DESCRIPTION JOURNAL POST. REF. DEBIT CREDIT

On January 1, the first day of the fiscal year, a company issues a $1,800,000, 4% , five-year bond that pays semiannual interest of $36,000 ($1,800,000 x 4% x %), receiving cash of $1,992,170. Journalize the bond issuance. Refer to the Chart of Accounts for exact wording of account titles. Journal 1 2 DATE DESCRIPTION JOURNAL POST. REF. DEBIT CREDIT

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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