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:

Cheek

The part of the face that is below the eye and to the side of the nose and mouth.

Adolescents

Young people in the transitional stage from childhood to adulthood, typically between the ages of 13 and 19.

Well-adjusted

Describes an individual who is mentally and emotionally stable, able to cope effectively with the stresses and demands of life.

Rebellious

Exhibiting defiance against authority or resistance to conventions or norms.