On the First Day of the Fiscal Year, a Company

question 60

Essay

On the first day of the fiscal year, a company issues a $800,000, 6%, 5 year bond that pays semi-annual interest of $24,000 ($800,000 × 6% × 1/2), receiving cash of $690,960. Journalize the entry to record the first interest payment and the amortization of the related bond discount using the straight-line method.

---

Definitions:

Document

Any written or printed material that provides information, serves as an official record, or acts as evidence.

Small Chunks

Dividing information or tasks into smaller, more manageable parts.

Smartphone

A mobile phone that performs many of the functions of a computer, typically having a touchscreen interface, internet access, and an operating system capable of running downloaded apps.

Type Size

The size of the characters in a piece of text, typically measured in points, affecting readability and visual appeal.