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.

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Definitions:

HR Forecasting Advantages

The benefits of predicting an organization's future human resource needs to ensure that it has the right number of employees with the necessary skills.

Organizational Strategy

A comprehensive plan that outlines how a company will allocate its resources and manage its operations to achieve its goals and objectives.

HR Costs

The expenses related to managing an organization's human resources, including salaries, benefits, training, and recruitment.

Contingency Planning

The process of preparing for potential future events or emergencies to ensure effective responses.