On the first day of the fiscal year, a company issues a $2,800,000, 7%, 7-year bond that pays semiannual interest of $98,000 ($2,800,000 × 7% × ½), receiving cash of $2,958,145. Journalize the bond issuance. If an amount box does not require an entry, leave it blank.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 7EA: On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $1,000 for $104,000. The...
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On the first day of the fiscal year, a company issues a $2,800,000, 7%, 7-year bond that pays semiannual interest of $98,000 ($2,800,000 × 7% × ½), receiving cash of $2,958,145.

Journalize the bond issuance. If an amount box does not require an entry, leave it blank.

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