On the First Day of the Fiscal Year, a Company

question 145

Essay

On the first day of the fiscal year, a company issues a $1,000,000, 7%, 5 year bond that pays semi-annual interest of $35,000 ($1,000,000 x 7% x 1/2), receiving cash of $884,171. Journalize the entry to record the issuance of the bonds.

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Definitions:

First Cervical Vertebra

Also known as the Atlas, it is the topmost vertebra in the spine that supports the skull and enables head movements.

Rheumatoid Arthritis

A chronic inflammatory disorder affecting joints, causing pain, swelling, stiffness, and potentially leading to joint deformity.

Uric Acid Crystals

Crystalline formations resulting from high levels of uric acid in the blood, often associated with conditions like gout.

Autoimmune Disease

A condition in which the body's immune system mistakenly attacks its own tissues, causing inflammation and damage.