On January 1, 2013, Davie Services Issued $20,000 of 8

question 52

Essay

On January 1, 2013, Davie Services issued $20,000 of 8% bonds that mature in five years. They were sold at par. The bonds pay semiannual interest payments on June 30 and December 31 of each year. Please provide the journal entry for the payment made on June 30, 2013.

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Definitions:

Taxes

Mandatory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Insurance

A financial product sold by insurance companies to safeguard against financial risk and unforeseen losses.

Supply Chain Management

The actions the firm takes to coordinate the various flows within a supply chain.

Materials Management

The inbound movement and storage of materials in preparation for those materials to enter and flow through the manufacturing process.