Homework SourseOn January 1 the first day of the fiscal year a company issu
On January 1, the first day of the fiscal year, a company issues a $7,500,000, 8%, five-year bond that pays semiannual interest of $300,000 ($7,500,000 x 8% x ½), receiving cash of $7,811,873.
Journalize the bond issuance. Refer to the Chart of Accounts for exact wording of account titles
| Date | Description | Debit | Credit |
Solution
Note: Please confirm exact wording of account titles with the chart of accounts since the same is not provided with the question.
| Date | Description | Debit | Credit |
| January 1 | Cash | 7811873 | |
| Premium on Bonds Payable | 311873 | ||
| Bonds Payable | 7500000 | ||
| (To record issuance of bonds at premium) |
