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

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

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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