On May 1 of the Current Year,a Company Paid $200,000

question 59

Essay

On May 1 of the current year,a company paid $200,000 to purchase 8%,10-year bonds with a par value of $200,000; interest is paid semiannually on March 1 and September 1.The company intends to hold the bonds until they mature.Prepare the journal entries to record (1)the bond purchase,(2)the receipt of the first semiannual interest payment on September 1 of the current year,(3)the accrual of interest for year-end December 31,and (4)the receipt of the second semiannual payment on May 1.

Recognize the importance of communication and documentation in legal practices.

Understand the role of technology in law office management and client communication.

Describe the ethical guidelines related to billing and time management.

Explain the importance of employee performance evaluations and employment policies within a law firm.

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Definitions:

Subsidiary Ledger

A detailed ledger supporting a general ledger, containing information on individual accounts like customers or suppliers.

Issued Check

A check that has been written, signed, and released by the drawer but not yet cleared through the banking system.

Advertising Expense

This is the cost associated with promoting products or services to generate sales and increase brand awareness, including media buys, creative costs, and advertising staff salaries.

Cash Receipts

The collection of money (currency, checks, or electronic transfers) by a business from its customers, either for the sale of goods or services or from other sources like investments.