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:

Conscious Behavior

Actions and responses that are controlled by awareness and deliberation, reflecting intentionality.

Personality

A combination of emotional, attitudinal, and behavioral response patterns of an individual, distinct and consistent across different situations.

Unconscious

The aspect of an individual’s psyche that holds processes and information below the level of conscious cognition.

Subconscious Thoughts

Thoughts and emotions that might not be currently acknowledged but have the ability to affect actions and choices.