On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $3,000,000, 8%,
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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
(c) The payment of the principal on the maturity date.
MaturityMaturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...
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Corporate Financial Accounting
ISBN: 9781337398169
15th Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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