Essay
On the first day of the fiscal year, a company issues a $500,000, 8%, 10 year bond that pays semi-annual interest of $20,000 ($500,000 x 8% x 1/2), receiving cash of $530,000. Journalize the entry to record the issuance of the bonds.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q13: If $500,000 of 10-year bonds with interest
Q24: On January 1, 2011, Gemstone Company obtained
Q30: On the first day of the fiscal
Q74: Zero-coupon bonds do provide for interest payments.
Q94: A corporation issues for cash $2,000,000 of
Q124: The Merchant Company issued 10-year bonds on
Q154: Bonds are sold at face value when
Q157: Calculate the total amount of interest expense
Q176: When the maturities of a bond issue
Q181: To determine the six-month interest payment amount