On the first day of the fiscal year, a company isues a $6,800,000, 6%, 7-year bond...
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On the first day of the fiscal year, a company isues a $6,800,000, 6%, 7-year bond that pays semiannual interest of $204,000 ($6,800,000 x 6% x W), receiving cash of $7,623,225. 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 isues a $6,800,000, 6%, 7-year bond that pays semiannual interest of $204,000 ($6,800,000 x 6% x W), receiving cash of $7,623,225. 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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Answer rating: 100% (QA)
Journal entry Debit Credit 1 Cash 7623225 2 Premium on bond payable 823225 3 To bo... View the full answer
Related Book For
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
Posted Date:
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