On the first day of the fiscal year, a company issues a $970,000, 7%, 5-year bond that pays semiannual interest of $33,950 ($970,000 x 7% x 1/2), receiving cash of $884,179. Journalize the entry to record the issuance of the bonds.
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.
Godo
Step by step
Solved in 3 steps
