On the First Day of the Fiscal Year, a Company

question 77

Essay

On the first day of the fiscal year, a company issues a $500,000, 8%, 10-year bond that pays semiannual interest of $20,000
($500,000 × 8% × 1/2), receiving cash of $530,000. Journalize the entry to record the issuance of the bonds.

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Definitions:

Stele

The central part of the root or stem containing the tissues derived from the procambium, including xylem, phloem, and sometimes pith.

Pericycle

A layer of cells in plant roots located just inside the endodermis, capable of giving rise to lateral roots and contributing to the root's growth.

Monocots

A group of flowering plants characterized by having one seed leaf, or cotyledon, which influences the structure of their stems, leaves, and roots.

Eudicots

A major group of flowering plants characterized by the presence of two (di-) cotyledons, or seed leaves, in their seeds.