On the First Day of the Fiscal Year, a Company

question 23

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 $437,740. Journalize the entry to record the issuance of the bonds.

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Definitions:

Distributive Justice

A principle concerned with the fair allocation of resources among diverse members of a community.

Libertarian

A political ideology favoring minimal state intervention in the personal and economic affairs of individuals, emphasizing freedom and voluntary association.

Egalitarian

Based on the principle that all people are equal and deserve equal rights and opportunities.

Equal Share

A division of assets, resources, or responsibilities among parties where each receives an identical portion or amount.