On the First Day of the Fiscal Year, a Company

question 32

Essay

On the first day of the fiscal year, a company issues an $800,000, 6%, 5-year bond that pays semiannual interest of $24,000 ($800,000 × 6% × 1/2), receiving cash of $690,960. Journalize the entry to record the first interest payment and the amortization of the related bond discount using the straight-line method.

---

Definitions:

Office Equipment

Tools and machinery used in an office for tasks such as computing, printing, and document storage, facilitating the smooth operation of business activities.

Customized Sales Presentation

A sales pitch tailored specifically to the needs, interests, and characteristics of the prospective customer.

Problem-Solution

A method or strategy that identifies a problem and proposes one or more solutions to address or mitigate it, often used in product development and marketing.

Company Resource People

Individuals within an organization who possess specific knowledge, skills, or access to information essential for carrying out tasks and supporting colleagues.