On the first day of the fiscal year, a company issues a $4,800,000, 7%, 8-year bond that pays semiannual interest of $168,000 ($4,800,000 × 7% × ½), receiving cash of $5,101,467. Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.
On the first day of the fiscal year, a company issues a $4,800,000, 7%, 8-year bond that pays semiannual interest of $168,000 ($4,800,000 × 7% × ½), receiving cash of $5,101,467. Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 7MC: On January 1 a company issues a $75,000 bond that pays interest semi-annually. The first interest...
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On the first day of the fiscal year, a company issues a $4,800,000, 7%, 8-year bond that pays semiannual interest of $168,000 ($4,800,000 × 7% × ½), receiving cash of $5,101,467.
Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.
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