please help solve questions **Bond Issuance Example**On the first day of the fiscal year, a company issues a $2,800,000, 8%, 8-year bond that pays semiannual interest of $112,000 ($2,800,000 × 8% × ½), receiving cash of $2,496,542.**Journalize the bond issuance. If an amount box does not require an entry, leave it blank.**| Account | Debit | Credit ||-----------------------------|--------------|--------------|| Interest Expense | | || Discount on Bonds Payable | | || Cash | | |**Explanation:**- **Interest Expense**: This field is used to record any interest expenditures. It is left blank for the bond issuance entry because it does not directly relate to the bond's issuing transaction. - **Discount on Bonds Payable**: This field accounts for the difference between the bond's face value and the cash received (when issued at a discount). It should reflect the discount amount spread over the bond term.- **Cash**: This field shows the actual cash received from the bond issuance.

The bonds are the financial instruments used to raise the money from the investors.

On the first day of the fiscal year, a company issues a $2,800,000, 8%, 8-year bond that pays semiannual interest of $112,000 ($2,800,000 x 8% x 2), receiving cash of $2,496,542. Journalize the bond issuance. If an amount box does not require an entry, leave it blank. Interest Expense Discount on Bonds Payable Cash

On the first day of the fiscal year, a company issues a $2,800,000, 8%, 8-year bond that pays semiannual interest of $112,000 ($2,800,000 x 8% x 2), receiving cash of $2,496,542. Journalize the bond issuance. If an amount box does not require an entry, leave it blank. Interest Expense Discount on Bonds Payable 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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