Question

help please!!

Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $2,400,000, 7%, 6-year bond that pays semiannual interest of $84,000 $2,400,000 x 7% x V), receiving cash of $2,287,379 Journalize the bond issuance. If an amount box does not require an entry, leave it blank. Accounts Payable Bonds Payable Cash Interest Expense Interest Payable Premium on Bonds Payable

Answer 1

Date/Event	Account Name	Debit	Credit
a) On Issue of Bond	Cash	2,287,379
	Discount on bonds payable	112,621
	Bond Payable		2,400,000
	(To record issuance of bond)
b) On First Interest Payment	Interest Expense	144,005
	Discount on bonds payable		17,505	(2300000 - 2159959)/8 semiannual
	Cash		126,500	(1500000 * 8%)/2
	(To record interest expense )