On the first day of the fiscal year, a company issues a $7,500,000, 6%, 8-year bond that pays semiannual interest of $225,000 ($7,500,000 x 6% x ½ ), receiving cash of $6,236,173. Journalize the bond issuance. If an amount box does not require an entry, leave it blank. Cash ✓ 6,236,173 ✔ 78,989 X Discount on Bonds Payable Bonds Payable Feedback ✓ ✓ ✓ 0 7,500,000 ✓ Check My Work Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
