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On the First Day of the Fiscal Year, a Company

question 145

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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.


Definitions:

Primary Motivation

The fundamental driving force behind an individual's actions, interests, or goals.

Intrinsic Motivation

The drive to engage in an activity for its own sake, rather than for some external reward or outcome.

Fascinated

Experiencing an intense interest or attraction that fully captivates one's attention.

Grade Point Average

A numerical calculation averaging the grades achieved in all of a student's courses, used as a measure of academic achievement.

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