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On the First Day of the Fiscal Year, a Company

question 171

Essay

On the first day of the fiscal year, a company issues a $1,000,000, 7%, five-year bond that pays semiannual interest of $35,000
($1,000,000 × 7% × 1/2), receiving cash of $884,171. Journalize the entry to record the issuance of the bonds.


Definitions:

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The maximum or minimum boundary set by law, such as for speed on roads, alcohol consumption, or transaction amounts.

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Shoes that are manufactured outside of one's home country.

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A tax imposed on imported goods, usually to protect domestic industries or to generate revenue.

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A condition in which resources are allocated in such a way that maximizes the net benefit to society, ensuring that goods and services are produced and distributed in the most cost-effective manner.

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