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On the first day of the fiscal year, a company issues a $5,300,000, 8%, five-year bond that pays semiannual interest of $212,000 ($5,300,000 × 8% × ½), receiving cash of $5,520,390. Journalize the first interest payment and the amortization of the related bond premium. If an amount box does not require an entry, leave it blank.     Interest Expense Interest Expense     Premium on Bonds Payable Premium on Bonds Payable     Cash Cash

On the first day of the fiscal year, a company issues a $5,300,000, 8%, five-year bond that pays semiannual interest of $212,000 ($5,300,000 × 8% × ½), receiving cash of $5,520,390. Journalize the first interest payment and the amortization of the related bond premium. If an amount box does not require an entry, leave it blank.     Interest Expense Interest Expense     Premium on Bonds Payable Premium on Bonds Payable     Cash Cash

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 7MC: On January 1 a company issues a $75,000 bond that pays interest semi-annually. The first interest...
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On the first day of the fiscal year, a company issues a $5,300,000, 8%, five-year bond that pays semiannual interest of $212,000 ($5,300,000 × 8% × ½), receiving cash of $5,520,390.

Journalize the first interest payment and the amortization of the related bond premium. If an amount box does not require an entry, leave it blank.

 
 
 Interest Expense Interest Expense
 
 
 Premium on Bonds Payable Premium on Bonds Payable
 
 
 Cash Cash
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