On January 1, the first day of the fiscal year, a company
issues a $800,000, 4%, 10-year bond that...

Question

On January 1, the first day of the fiscal year, a company
issues a $800,000, 4%, 10-year bond that pays semiannual interest of $16,000
($800,000 3 4% 3 ½ year), receiving cash of $800,000. 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.

Sumit · Accepted Answer

Sheet2
		Particulars	Debit Amount	Credit Amount
	(a).	Bank Account	$   800,000
		4% Bonds Account		$   800,000
	(b).	Interest on Bonds	$   16,000
		Bank Account		$   16,000
	(c)	4% Bonds Account	$   800,000
		Bank Account		$   800,000

On January 1, the first day of the fiscal year, a company issues a $800,000, 4%, 10-year bond that pays semiannual interest of $16,000 ($800,000 3 4% 3 ½ year), receiving cash of $800,000. Journalize...

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