Using the bond from Practice Exercise 14-3A, journalize the first interest payment and the amortization of the related bond discount.
Question:
Using the bond from Practice Exercise 14-3A, journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar.
Data from Exercise 14-3A,
On the first day of the fiscal year, a company issues a $1,800,000, 6%, five-year bond that pays semiannual interest of $54,000 ($1,800,000 × 6% × ½), receiving cash of $1,725,151. Journalize the entry record and the issuance of bonds.
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As the cash taken by the issues of the bonds means the bon…View the full answer
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Related Book For 
Accounting
ISBN: 9781337902687
28th Edition
Authors: Carl S. Warren, Christine Jonick, Jennifer Schneider
Question Details
Chapter #
14- Long-Term Liabilities: Bonds and Notes.
Section: Practice Exercises
Problem: 7
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Question Posted: April 12, 2021 05:10:24