Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac

تمرين 47

Issuing bonds at face amount
On Januray 1, the first day of the fiscal year, Designer Fabric Inc. issues a $5,000,000, 6%, 10-year bond that pays semiannual interest of $150,000 ($5,000,000 × 6% × ½ year), receiving cash of $5,000,000. Journalize the entries to record (A) the issuance or the bonds, (B) the first interest payment on June 30, and (C) the payment of the principal on the maturity date.