On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $300,000, 9%, 10-year bond that pays semiannual interest of $13,500 ($300,000 x 9% x ½ year), receiving cash of $300,000. Journalize the entries to record (a) the issuance of the bonds, (b) the first interest payment on June 30, and (c) the payment of the principal on the maturity date of December 31 on page 11. Refer to the Chart of Accounts for exact wording of account titles.

On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $300,000, 9%, 10-year bond that pays semiannual interest of $13,500 ($300,000 x 9% x ½ year), receiving cash of $300,000. Journalize the entries to record (a) the issuance of the bonds, (b) the first interest payment on June 30, and (c) the payment of the principal on the maturity date of December 31 on page 11. Refer to the Chart of Accounts for exact wording of account titles.

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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