On the First Day of the Fiscal Year, a Company

question 37

Essay

On the first day of the fiscal year, a company issues a $1,000,000, 7%, 5-year bond that pays semiannual interest of $35,000 ($1,000,000 × 7% × 1/2), receiving cash of $884,171. Journalize the first interest payment and the amortization of the related bond discount using the straight-line method. Round answers to the nearest dollar.

---

Definitions:

Work/Life Balance

The equilibrium between professional responsibilities and personal life, where neither is neglected.

Open-door Policy

A managerial policy that allows employees to directly communicate or raise concerns with their managers or higher-level executives without needing an appointment.

Chain of Command

The formal line of authority, communication, and responsibility within an organization.

Upward Communication Technique

Strategies or methods used for conveying information from lower levels of an organization to higher levels, often to provide feedback or report on progress.