On the first day of the fiscal year, a company issues a $3,200,000, 6%, 5-year bond that pays semiannual interest of $96,000 ($3,200,000 x 6% x 1/2), receiving cash of $2,820,190. Journalize the bond issuance. If an amount box does not require an entry, leave it blank. Interest Expense ✓ Premium on Bonds Payable ✓ Cash X 96,000 X X X 47,476 X X ✓

On the first day of the fiscal year, a company issues a $3,200,000, 6%, 5-year bond that pays semiannual interest of $96,000 ($3,200,000 x 6% x 1/2), receiving cash of $2,820,190. Journalize the bond issuance. If an amount box does not require an entry, leave it blank. Interest Expense ✓ Premium on Bonds Payable ✓ Cash X 96,000 X X X 47,476 X X ✓

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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