On January 1, the first day of the fiscal year, Designer Fabric Inc issues a $3,000,000, 8 , 10 year bond that pays semiannual interest of $120,000 ($3,000,000 8 year), receiving cash of $3,000,000 Journalize the entries to record (a) The issuance of the bonds, (b) The first interest payment on June 30, and (c) The payment of the principal on the maturity date

Question: On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $3,000,000, 8%, 10-year bond that pays semiannual interest of $120,000

On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $3,000,000, 8%, 10-year bond that pays semiannual interest of $120,000 ($3,000,000 × 8% × ½ year), receiving cash of $3,000,000. Journalize the entries to record

(a) The issuance of the bonds,

(b) The first interest payment on June 30, and

Step by Step Solution

★★★★★

3.41 Rating (170 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a Cash 3000000 Bonds P... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Financial Accounting Questions!

On January 1, the first day of the fiscal year, a company issues a $5,000,000, 6%, 10-year bond that pays semiannual interest of $150,000 ($5,000,000 6% year), receiving cash of $5,000,000....

On the basis of the following data, (a) Journalize the adjusting entries at December 31, the end of the current fiscal year, and (b) Journalize the reversing entries on January 1, the first day of...

One Product Corp. (OPC) incorporated at the beginning of last year. The balances on its post-closing trial balance prepared on December 31, at the end of its first year of operations, were: The...

Frint Rem Issuing Bonds at a Face Amount On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $950,000, 7 % , 10- year bond that pays semiannual interest of $33,250 ($950,000...

On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $5,000,000, 6%, 10-year bond that pays semiannual interest of $150,000 ($5,000,000 X 6% X year), receiving cash of...

On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $3,000,000, 8%, 10-year bond that pays semiannual interest of $120,000 ($3,000,000 X 8% X year), receiving cash of...

need help with accounting plz for these 6 questions Issuing Bonds at Face Amount On January 1 , the first day of the fiscal year, Designer Fabric Inc. issues a $950,000, 10%,10-year bond that pays...

Issuing Bonds at Face Amount On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $650,000, 4%, 10-year bond that pays semiannual interest of $13,000 ($650,000 4% year),...

i dont uderstand this..help pls! Issuing Bonds at a Face Amount On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $850,000, 10%, 10-year bond that pays semiannual interest...

Issuing Bonds at a Face Amount On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $800,000, 10%, 10-year bond that pays semiannual interest of $40,000 $800,000 x 10% x 12...

The pathogen Phytophthora capsici causes bell peppers to wilt and die. Because bell peppers are an important commercial crop, this organism has undergone a great deal of agricultural research. It is...

2. Find the inverse Laplace transform of the following functions. (a) (b) F(s) = s - 1 (s + 1) (s+4) s4 +5s2 +2s-9 (s2 +8s +17) (s - 2) 3. Use Laplace transform to solve the initial value problem...

5. Short-run profit maximization for a perfectly competitive firm occurs where the firms marginal cost equals a. average total cost. b. average variable cost. c. marginal revenue. d. all of the above.

=+ Look again at the principles that govern customers perceptions of the queuing experience. For the following operations, apply the principles to minimize the perceived negative effects of queuing:...

List (a) through (j) in the order they would be performed in preparing and completing an end-of-period spreadsheet (work sheet) a. Add the Debit and Credit columns of the Unadjusted Trial Balance...

A 10-year bond with a face value of 1000 dollars is redeemable at par, pays coupons at 5.9 percent per 6 months, and has a yield rate of 6.8 percent convertible semiannually. Suppose the book value...

Discuss how each of the following transactions will affect the financial ratios specified in the table (i. e. increase, decrease, no effect). You are required to provide detailed explanations for the...

You bought a stock three years ago and paid $45 per share. You collected a $2 dividend per share each year you held the stock and then you sold the stock for $47 per share. What was your annual...