On the First Day of the Fiscal Year, a Company

question 171

Essay

On the first day of the fiscal year, a company issues a $1,000,000, 7%, five-year bond that pays semiannual interest of $35,000
($1,000,000 × 7% × 1/2), receiving cash of $884,171. Journalize the entry to record the issuance of the bonds.

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Definitions:

Pelvic Splanchnic Nerves

Nerves that arise from the sacral spinal cord, innervating the lower abdomen, pelvis, and contributing to the function of urinary and reproductive organs.

Parasympathetic Division

A division of the autonomic nervous system that conserves energy by slowing the heart rate and increasing digestive and glandular activities.

Postganglionic Neurons

Neurons that transmit impulses away from ganglia (collections of nerve cell bodies) in the autonomic nervous system to a target organ or tissue.

Terminal Ganglia

Groups of nerve cells situated close to or inside the organs they supply nerves to, playing a role in the autonomic nervous system.