On January 1, the first day of the fiscal year, a company issues a $700,000, 7%, 10-year bond that pays semiannua interest of $24,500 ($700,000 x 7% x V2 year), receiving cash of $700,000. (a) Journalize the entry to record the issuance of the bonds. Cash 700,000 Bonds Payable - (b) Journalize the entry to record the first interest payment on June 30. Interest Expense Cash
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.
![On January 1, the first day of the fiscal year, a company issues a $700,000, 7%, 10-year bond that pays semiannua
interest of $24,500 ($700,000 x 7% x V2 year), receiving cash of $700,000.
(a) Journalize the entry to record the issuance of the bonds.
Cash
700,000
Bonds Payable -
(b) Journalize the entry to record the first interest payment on June 30.
Interest Expense
Cash](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fee5de385-2031-4877-b6b0-7e87550f61bf%2Fb3aed533-3de8-41f2-883a-59356be0db14%2Fdvbxqgf_processed.jpeg&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Step by step
Solved in 2 steps with 1 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
![Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781305088436/9781305088436_smallCoverImage.gif)
![Cornerstones of Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)
![Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781305088436/9781305088436_smallCoverImage.gif)
![Cornerstones of Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
![College Accounting, Chapters 1-27](https://www.bartleby.com/isbn_cover_images/9781337794756/9781337794756_smallCoverImage.gif)
![Excel Applications for Accounting Principles](https://www.bartleby.com/isbn_cover_images/9781111581565/9781111581565_smallCoverImage.gif)